[00:00:04]
OKAY, ARE WE READY TO GO? ALRIGHT.UM, SO THIS IS THE DEFERRED COMPENSATION ADVISORY COMMITTEE OF THE EAST BAY REGIONAL PARK DISTRICT.
UH, WE'RE MEETING TODAY ON WEDNESDAY, NOVEMBER 15TH, BEGINNING AT NINE 30.
[Roll Call]
CAN THE RECORDING SECRETARY PLEASE CALL THE ROLL? CAN YOU HEAR ME OKAY? HOLD ON ONE SECOND.OH, THIS SHOULD BE UNMUTED, RIGHT? IT'S UNMUTED LIKE THAT.
CAN SOMEONE, YEAH, CAN YOU HEAR ME? SOUNDS LIKE YOU CAN HEAR ME.
HOW'S, HOW'S THIS? TESTING? TESTING.
UM, SO THIS IS THE COMPENSATION.
ALL RIGHT, CONNIE, UH, GOOD MORNING.
THIS IS CONNIE SWISHER, RECORDING SECRETARY, TAKING RULE CALL VOTE CHAIR MEADOW DARCY.
THIS MEETING IS BEING HELD PURSUANT TO THE BROWN ACT, WE ARE PROVIDING LIVE VIDEO AND AUDIO STREAMING.
MEMBERS OF THE PUBLIC WISHING TO MAKE A PO PUBLIC COMMENT CAN DO SO.
LIVE IN PERSON OR VIA THIS ZOOM MEETING BY SUBMITTING AN EMAIL OR LEAVING A VOICEMAIL.
THIS INFORMATION IS NOTED ON THE AGENDA LOCATED AT THE PARK DISTRICT WEBSITE, EB PARKS.ORG.
IF THERE ARE NO OTHER QUESTIONS, WE CAN PROCEED WITH THE MEETING.
[Approval of Minutes]
SO THE FIRST ITEM ON THE AGENDA IS THE APPROVAL OF THE MINUTES.UM, DID EVERYONE HAVE A CHANCE TO REVIEW THE MINUTES? YES.
UH, DOES ANYONE WANNA MAKE A MOTION TO, OR DOES ANYONE HAVE ANY, HAVE ANY CHANGES TO THE MINUTES THAT THEY NEED TO MAKE? SO MOVED.
YOU'RE MAKING A MOTION TO APPROVE THE MINUTES? TO APPROVE THE MINUTES? YES.
ANY DISCUSSION ON THE ITEM? ALRIGHT, HEARING NONE.
ANY, ANY, UH, ANY NAYS? ANY ABSTENTIONS? I'M GOING TO ABSTAIN SINCE I WASN'T THERE.
OUR NEXT ITEM IS PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA.
ARE THERE ANY PUBLIC COMMENTS I'VE RECEIVED? NO PUBLIC CONTACT.
[Action Items]
ACTION ITEMS. SO WE HAVE SOME INFORMATION ITEMS. UH, THE FIRST ONE IS THE MAGDA CONFERENCE RECAP.SO THERE WAS, I THINK TWO OF US, BEN AND MYSELF.
I DON'T KNOW IF ANYBODY ELSE REGISTERED TO DO THE ONLINE.
UM, I DID REGISTER TO DO THE ONLINE, UNFORTUNATELY, I WAS PLANNING TO GO, UM, BUT WITHOUT THE FUNDING
BUT I DID REGISTER FOR THE, THE VIRTUAL CONFERENCE JUST TO SEE WHAT IT WAS LIKE.
I, I WHAT I, WHAT HA THIS IS, I JUST WANNA GIVE SOME FEEDBACK ON THIS.
SO, WHEN I, UH, DID THE, THE VIRTUAL, IT'S ALL LIVE, AND I HAD MEETINGS AT CERTAIN TIMES THAT I WASN'T GONNA BE ABLE TO MAKE.
AND MY ASSUMPTION WAS THAT IT WOULD BE RECORDED AND I COULD REPLAY IT OR I COULD WATCH IT AT A LATER TIME.
UNFORTUNATELY, THAT'S NOT THE CASE.
SO IF YOU MISS IT, THEN YOU HAVE TO WAIT UNTIL JANUARY
SO THEN I WAS LIKE, OKAY, WELL NOW THE TIME THAT I DID SET ASIDE TO WATCH IT, LIKE, I CAN'T EVEN DO THAT.
SO, UM, SO IT WAS REALLY DIFFICULT AND I HAVEN'T BEEN ABLE TO CIRCLE BACK TO HAVE TIME TO, TO DO IT.
UM, AND I DON'T KNOW WHEN THEY'RE COMING OUT.
I GUESS, I DUNNO IF IT WAS JANUARY OR IF IT WAS GONNA BE A LITTLE EARLIER.
UM, AND THEN IT SOUNDS LIKE THERE'S ONLY, UM, IT DOESN'T REALLY COVER ALL OF THE SESSIONS.
IT WAS ONLY A SELECT FEW, UM, WHICH WERE NOT VERY, UM, SOME, LIKE, IT WAS LIKE THE OPENING SESSION, YOU KNOW, WHICH IS NOT AS RELEVANT AS SAY SOMETHING ELSE.
UM, THE BIGGEST, UH, BONUS I THINK THAT I FOUND WAS GOING IN WITH THE, UH, THE AGENCIES THAT ARE YOUR SIZE AND DISCUSS DISCUSSING ITEMS THERE.
UM, AND SO THAT ONE, OBVIOUSLY YOU, I THINK YOU JUST GET TO WATCH IT, UM, AND SEE PEOPLE, YOU KNOW, YOU'RE NOT ABLE TO INTERACT IN ANY WAY.
UM, SO YOU'RE REALLY NOT ABLE TO ASK ANY QUESTIONS OR GET, YOU KNOW, FEEDBACK.
SO, SO IT WAS JUST A LITTLE DISAPPOINTING, UM, THAT RESPECT AS FAR AS THE VIRTUAL CONFERENCE.
UM, AND THEN I THINK, BEN, YOU WERE, I WAS SLATED TO GO, UH, I DIDN'T GET ALL THE APPROVALS COMPLETED IN TIME DUE TO THE, THE DEADLINES AND STUFF, SO I DIDN'T END UP GOING ANYWAY AND DIDN'T
[00:05:01]
DO THE VIRTUAL.'CAUSE I WAS BUSY WITH OTHER THINGS.
I HAD SLATED THAT TIME OFF TO GO, AND THEN WHEN I DIDN'T GO, I HAD OTHER THINGS THAT FILL IN FOR THAT TIME ANYWAY.
SO I WAS GONNA WAIT FOR JANUARY TO WATCH THE VIDEOS RIGHT ONLINE.
SO, YEAH, I THINK OVERALL JUST DISAPPOINTING THAT, UM,
UM, AND I THINK IT'S REALLY IMPORTANT THAT WE ATTEND.
UM, SO I FEEL LIKE IT'S A REALLY BIG MISSED OPPORTUNITY.
UM, I DO WANT TO, AGAIN, UM, I THINK WE NEED TO DO BETTER ABOUT HAVING FUNDING AVAILABLE, UM, BECAUSE IT SEEMS LIKE THIS CONTINUES TO HAPPEN EVERY YEAR WHERE WE DON'T KNOW WHAT THE FUNDING IS.
UM, WE CAN'T GET CLEAR APPROVALS, SO WE CAN'T GET THE TIME OFF, WE CAN'T GET THE INFORMATION IN.
UM, AND SO, YOU KNOW, IT'S JUST VERY FRUSTRATING TO TRY TO REARRANGE YOUR LIFE TO GO, YOU KNOW, TO A CONFERENCE.
UM, AND THEN NOT HAVE ANY, ANY OF THE SUPPORT, UH, GOING THROUGH.
SO NOT QUITE SURE HOW TO, HOW TO HANDLE THAT IN THE FUTURE, BUT I'M OPEN TO SUGGESTIONS.
I THINK NEXT YEAR WE JUST NEED TO START EARLIER.
AND, UM, IT WAS AN UNUSUAL YEAR.
SO IT'LL, IT'LL MAKE MORE SENSE FOR US TO GO NEXT YEAR BECAUSE WE'LL BE LEARNING THINGS THAT WE CAN ACTUALLY IMPLEMENT.
UM, WHEREAS YEAH, THE TIME THAT I WENT, THERE WERE A LOT OF THINGS THEY TALKED ABOUT WHERE I WAS LIKE, AH, THAT DOESN'T APPLY TO US
UM, SO ANYHOW, DON'T, DON'T, UH, DON'T DESPAIR
SO WE CAN TRY AGAIN NEXT YEAR AND LET'S JUST START THE PLANNING EARLIER.
YEAH, I THINK IT'S JUST HARD 'CAUSE SOME PEOPLE ARE ON LIMITED TIMEFRAMES THAT THEY'RE ON THIS COMMITTEE, AND SO, YOU KNOW, UM, SOMETIMES LIKE IF YOU JUST JOIN THE COMMITTEE NOW, YOU KNOW IT'S GONNA BE A SIGNIFICANT PERIOD OF TIME, OR, OR IF YOU JUST JOINED LAST YEAR, THEN, YOU KNOW, THAT'S TWO YEARS OF NOT BEING, UH, TRAINED AND HAVING TO SORT OF MAKE THESE RECOMMENDATIONS AND PROVIDE OVERSIGHT ON SOMETHING THAT'S REALLY DIFFICULT TO UNDERSTAND.
SO I JUST THINK TRAINING IS A REALLY IMPORTANT CORE, UH, TO THIS COMMITTEE.
UM, AMANDA, DO YOU REMEMBER HOW MUCH BEFORE THAT NNA PUT IT OUT? I MEAN, IT WAS A WHILE, BUT I THOUGHT MAYBE WASN'T LIKE, OH, YEAH, I DIDN'T PUT IT IN THE BEGINNING OF THE YEAR.
I MEAN, USUALLY ONCE THE, ONCE THE, THE, ONCE THE CONFERENCE IS DONE, THEY PUBLISH WHERE THE NEXT ONE'S GONNA BE AND THE DATE.
SO WE ALWAYS HAVE THAT A YEAR IN ADVANCE.
AND I THINK WE DID REALLY TRY TO PLAN A AHEAD THIS TIME, BUT I THINK WE COULDN'T REALLY GET CLEAR ANSWERS ON THE FUNDING.
AND SO I DO THINK THAT'S SOMETHING THAT WE NEED TO, UM, I KNOW WE HAVE THAT AS ONE OF OUR ITEMS. UM, UH, AS, UH, THE ADMINISTRATIVE ALLOWANCE ACCOUNT, I THINK IT'S REALLY IMPORTANT THAT WE HAVE THAT ACCOUNT AVAILABLE SO THAT WE'RE NOT HAVING TO REJUSTIFY THE IMPORTANCE OF THE CONFERENCE AND GOING AROUND GETTING APPROVALS AND EXPLAINING IT, YOU KNOW, TO, UH, THE DIFFERENT LEVELS.
UM, IT JUST, IT, TO ME, IT'S JUST SUCH AN OBSTACLE AND IT REALLY IS FRUSTRATING FOR COMMITTEE MEMBERS THAT ARE JUST TRYING TO DO THE RIGHT THING.
SO, UM, WE'VE REALLY GOTTA GET THAT ADDRESSED, I THINK.
SO WE CAN TALK A LITTLE BIT ABOUT THAT.
WELL, IS THERE ANY REASON TO THINK THAT THAT FUNDING SITUATION IS GONNA BE DIFFERENT THIS COMING YEAR? UM, I DON'T KNOW.
THE ONLY THING I CAN THINK OF IS THAT I DO BELIEVE WE SHOULD HAVE AN ADMINISTRATIVE ALLOWANCE ACCOUNT.
SO THIS YEAR WE DIDN'T HAVE THE ADMINISTRATIVE ALLOWANCE, YOU KNOW, IN THE, IN THE PRIOR YEARS, WE AT LEAST WERE ABLE, I MEAN, IN THE PRIOR YEARS THAT THE PROBLEM WAS WE HAD THE MONEY, BUT THEN GETTING THE APPROVALS TO GO WAS HELD UP.
AND SO, YOU KNOW, IT ENDED UP BEING KIND OF LATE, RIGHT.
THEN WE FINALLY, LIKE, EVERYBODY KIND OF GOT ON BOARD WITH THAT, AND WE WERE STARTING EARLY, BUT THEN WE LOST THE FUNDING.
AND SO THEN IT BECAME, WELL, WHO'S GONNA PAY AND HOW MUCH IS IT GONNA BE? AND WHERE DOES IT COME FROM? AND, YOU KNOW, WHY DO YOU HAVE TO GO AND WHO'S GOING AND HOW MANY, AND THINGS LIKE THAT.
SO, SO I THINK THE, THE FUNDING TO ME IS REALLY KEY, BECAUSE WE CAN ALWAYS PLAN EARLY.
UM, WE CAN ALWAYS DO THAT, BUT THE FUNDING IS REALLY WHAT PREVENTS EVERYBODY FROM, YOU KNOW, IT'S HARD TO PUT IN A REQUEST TO GO TO A TRAINING WHEN THERE'S NO FUNDING IDENTIFIED OF WHO'S PAYING FOR IT.
HEY, I JUST, UH, YOU REGISTER EARLY, RIGHT? OH, OF COURSE, YES.
SO, UH, THE CONFERENCE FOR 2024 IS IN PHOENIX, SEPTEMBER 15TH THROUGH 18TH FOR 2025.
IT'S IN SAN DIEGO, SEPTEMBER 28TH THROUGH OCTOBER 2ND.
SO WE HAVE ALL THE INFORMATION WE NEED TO START THINKING ABOUT IT, FIGURING OUT WHAT THE COSTS WOULD BE, AND, UM, TAKE IT FROM THERE.
WHAT WERE THE DATES IN PHOENIX AGAIN? UH, SEPTEMBER 15TH THROUGH THE 18TH.
UM, AND I DO WANNA MAKE SURE THAT EVERYBODY GOES, I THINK IT'S REALLY IMPORTANT.
LIKE I SAID, WE HAVE, I FEEL, YOU KNOW, I KNOW MONICA'S ALWAYS GOT PROB, YOU KNOW, DIFFICULTY WITH OPEN ENROLLMENT, BUT I, I REALLY THINK WE HAVE TO PRIORITIZE IT, UM, FOR PEOPLE TO GO.
I THINK IT'S REALLY IMPORTANT TO GO AND ATTEND AND BE IN THAT ENVIRONMENT AND ASK THE QUESTIONS AND
[00:10:01]
BE AROUND OTHER PROFESSIONALS THAT ARE DOING THIS, UM, AS AN ADVISORY COMMITTEE, UM, THAT CAN, YOU KNOW, SHARE THEIR KNOWLEDGE AND THEIR PROCEDURES AND THINGS.I THINK THAT WOULD JUST REALLY HELP US.
UM, 'CAUSE I, I FEEL AS, LIKE, I FEEL THAT, YOU KNOW, LIKE WHEN I GO TO THE CONFERENCE, I COME BACK WITH IDEAS AND IT'S JUST REALLY HARD TO GET THEM GOING WHEN THERE'S NOT A SHARED, YOU KNOW, UH, WITH THE WHOLE COMMITTEE OF LIKE, HEY, THIS IS SOMETHING WE SHOULD DO AND THIS IS WHY IT'S IMPORTANT.
AND THAT'S SOMETHING THAT YOU REALLY GET FROM THE CONFERENCE.
SO, UM, SO YEAH, I THINK IT'S, I THINK REALLY IT COMES DOWN TO THE FUNDING AND MAKING SURE THAT THAT'S IN PLACE, BECAUSE THEN HOW DOES THE RETIREE GO? YOU KNOW, IT'S LIKE, THAT'S OFTEN LIKE, WE'LL JUST PUT IN FOR YOUR HR FUNDS.
IT'S LIKE, PUT, THE RETIREE DOESN'T HAVE, AND, AND WE SHOULDN'T HAVE THAT BARRIER FOR THE COMMITTEE.
I MEAN, I, IT IS JUST SURPRISING TO ME, LIKE, LIKE EVERY OTHER COMMITTEE THAT NEEDS TRAINING OR NEEDS TO GO TO A CONFERENCE TO DO THEIR JOB GOES.
AND, UM, AND THIS JUST ALWAYS SEEMS TO BE AN OBSTACLE.
SO I'M NOT SURE HOW WE CAN ELIMINATE THOSE OBSTACLES OTHER THAN CREATING A BUDGET FOR IT.
ANY OTHER THOUGHTS, COMMENTS? NO.
SO THE NEXT ITEM ON HERE IS THE DRAFT INVESTMENT POLICY STATEMENT, PROPOSED POWER FUND LINEUP, AND DISCUSSION OF TIMELINE FOR TRANSITION.
DO YOU WANNA TAKE THAT ONE? YEAH, I'D BE GLAD TO.
UM, SO TODAY WE ARE GOING TO, UM, HAVE OUR FIRST INTRO INTRODUCTION TO, UH, EMPOWER FOR THE COMMITTEE.
UM, SO WE HAVE SOME FOLKS FROM EMPOWER HERE, AND THEY'RE GOING TO BE PRESENTING FOR US ON, UH, OUR DRAFT INVESTMENT POLICY STATEMENT AND PROPOSED FUND LINEUP.
AND, UM, THE ROUGH PLAN, I'LL JUST OUTLINE HERE AND THEN, AND THEN HAND IT OVER TO THEM, IS THAT WE REVIEW THIS.
I DO THINK WE'LL WANNA MAKE SOME EDITS TO THE INVESTMENT POLICY AND THE, AND MAYBE FROM THAT, THE PROPOSED LINEUP, OR MAYBE THEY'LL HAVE SOME IDEAS ON THE LINEUP.
UM, AND THEN THE, THE IDEA WOULD BE TO BRING THIS TO THE FINANCE COMMITTEE IN JANUARY, SO THE BOARD FINANCE COMMITTEE IN JANUARY.
UM, I KNOW IF THERE'VE BEEN SOME QUESTIONS ABOUT WHERE, WHERE ARE WE IN THIS PROCESS? SO THE BOARD DID APPROVE, UH, THE CONTRACT WITH EMPOWER AT THAT LAST BOARD MEETING IN OCTOBER, I THINK IT WAS.
UM, AND SO NOW THE, UM, CONTRACT IS BEING REVIEWED BY LEGAL AND EDITS GOING BACK AND FORTH.
AND SO WE'RE, WE'RE STILL IN THAT PROCESS OF GETTING THE CONTRACT SIGNED.
UM, BUT I HAVE EVERY REASON TO BELIEVE WE'LL GET THERE.
SO, UM, SO WE SHOULD PROCEED WITH THIS, I GUESS IS ALL I'M SAYING, REVIEWING THE INVESTMENT POLICY AND, UM, THE PROPOSED FUND LINEUP AS THOUGH THIS IS MOVING FORWARD.
DO WE HAVE LIKE A SIDE BY SIDE, YOU KNOW, COMPARISON OF SERVICES PROVIDED BY EMPOWER VERSUS MISSION SQUARE? UM, I KNOW THAT'S A LOT OF QUESTIONS.
UM, THERE'S A LOT, BEEN A LOT OF QUESTIONS ABOUT THAT IS LIKE, WHAT'S GONNA BE PROVIDED.
YEAH, THAT'S A GREAT, THAT'S A GREAT POINT.
LET'S, UM, I THINK THAT'S SOMETHING THAT WE SHOULD GET TOGETHER FOR PARTICIPANTS.
UM, SO LET'S DRAFT, IT'S GONNA HAVE TO BE DONE OUTSIDE OF THIS COMMITTEE.
OBVIOUSLY WE DON'T HAVE, I DON'T HAVE ANYTHING I CAN SHARE WITH YOU RIGHT NOW, BUT, UM, I'M SURE EMPOWER CAN GIVE US SOMETHING LIKE THAT AND THEN WE CAN, UM, GET THAT OUT TO PARTICIPANTS.
I MEAN, WE NEED TO TALK ABOUT, IT'S NOT ON THE AGENDA FOR TODAY, BUT WE NEED TO FIGURE OUT WHAT OUR, WHAT OUR PLAN IS FOR, UM, INFORMING EVERYONE ABOUT THIS CHANGE.
BUT I THINK EVEN FOR THE COMMITTEE, UM, I THINK I'M NOT CLEAR TO, LIKE, EVEN IN THE, THE CONTRACT REVIEW, LIKE, YOU KNOW, WHAT SERVICES ARE WE NOT, LIKE, I'VE NOTICED THAT WITH SOME OF THE PROVIDERS THAT WE'VE CHANGED OVER TO, LIKE OUR EAP PROVIDER, OUR WORKERS' COMP, ALL OF A SUDDEN IT'S LIKE, WELL, WAIT, OH, WE USED TO GET THIS AND OH, WE, WE LOST THAT.
OR, YOU KNOW, SO LIKE, I JUST WANNA MAKE SURE THAT WE'RE CLEAR ON LIKE, UM, YOU KNOW, I KNOW THAT WE HAVE LIKE, UM, FINANCIAL PLANNERS, PEOPLE CAN MEET WITH FINANCIAL PLANNERS AND, YOU KNOW, THAT THOSE APPOINTMENTS ARE AVAILABLE, YOU KNOW, MULTIPLE APPOINTMENTS, YOU KNOW, I'M JUST NOT QUITE SURE, LIKE, IS THAT AVAILABLE? IS THAT, UM, YOU KNOW, THAT'S, THAT'S KIND OF THE QUESTION IS, IS THINGS LIKE THAT.
LIKE, WHAT ARE, WHAT IS IT THAT MISSION SQUARE IS PROVIDING? LIKE, WHAT'S EMPOWER'S WEBSITE LOOK LIKE? YOU KNOW, DOES IT HAVE THE TOOL WHERE YOU CAN PLAN OUT, UM, YOU KNOW, ESTIMATE YOUR RETIREMENT IN COORDINATION WITH CALPERS RETIREMENT? YOU KNOW, SO LIKE, THERE'S A LOT OF FEATURES THAT WE HAD FROM MISSION SQUARE THAT I'M NOT CLEAR.
AND I, I, I THINK YOU'RE RIGHT.
THAT WOULD MAKE PEOPLE FEEL COMFORTABLE IF WE COULD SAY LIKE, YES, IT'S STILL GOING TO EXIST.
UM, SO WHY DON'T WE PUT THAT TOGETHER? I'LL WORK WITH MONICA ON THAT.
THAT'LL BE AN ACTION ITEM FOR, FOR US TO WORK ON.
SO I WANNA, UM, QUESTION REAL QUICK.
ON THE, THE INVESTMENT POLICY, IS THIS A EMPOWER PUSH? LIKE, WHERE'D THIS COME FROM? WHO'S THE NEXUS OR GENERATOR OF THIS DOCUMENT?
[00:15:01]
LIKE, WHY AND WHERE'D IT COME FROM? JUST SO I KNOW THE BACKGROUND? YEAH.SO THIS WAS, UM, EMPOWERS FIRST DRAFT FOR US.
AND, UM, THIS IS A BEST PRACTICE TO HAVE AN INVESTMENT POLICY STATEMENT NOW THAT WE HAVE FULL CONTROL OVER WHAT OUR INVESTMENTS ARE.
SO YEAH, WE DIDN'T HAVE ONE IN THE PAST.
BUT WE WERE JUST USING MISSION SQUARE'S DEFAULT LINEUP.
SO THAT'S WHY WE'RE, THAT'S WHY WE HAVE THIS NOW.
SO I THINK, DO WE WANNA TURN IT OVER TO EMPOWER? UM, SURE.
AND I THINK THIS WAS ONE OF THE THINGS, LIKE THEY TALKED ABOUT AT THE, AT THE CONFERENCE, UM, WAS THIS INVESTMENT POLICY STATEMENT.
AND I THINK THERE ARE QUITE A FEW RESOURCES THAT WE CAN UTILIZE, UM, UH, FROM THEM AS WELL.
SO THIS IS THE KIND OF THING THAT, THAT, YOU KNOW, I THINK IT'S SO IMPORTANT.
THAT'S ONE OF THE CONCERNS I HAD WITH MISSION SQUARE INITIALLY WAS LIKE, WE'RE HERE AND MISSION SQUARE'S TELLING US HOW TO DO THIS COMMITTEE.
YOU KNOW, AND I'M LIKE, THAT SEEMS A LITTLE LIKE A CONFLICT, YOU KNOW? AND THAT'S WHERE THAT CONFERENCE REALLY CAN BALANCE THAT OUT.
AND SO WHEN WE GET, FOR EXAMPLE, AN INVESTMENT POLICY STATEMENT FROM EMPOWER, SURE, EVERYTHING'S GREAT, YOU KNOW, BUT LIKE, SHOULD WE BE TAKING THAT FROM THE PROVIDER THAT WE HAVE? OR SHOULD WE BE ALSO HAVING THAT EYE? AND I THINK THAT'S WHAT'S REALLY HARD, IS TO SIT HERE AND BE LIKE, SURE.
YOU KNOW? AND NOT HAVE THAT KIND OF SUPPORT OR KNOWLEDGE BASE TO BE ABLE TO EVALUATE IT, UM, CAREFULLY.
AND LIKE, EVEN WE WERE TALKING, UM, ABOUT THE RFP, UM, WHEN WE WERE AT THE CONFERENCE, THEY WERE LIKE ADAMANT ABOUT, DO NOT DO AN RFP ON YOUR OWN.
YOU KNOW, LIKE, CONTRACT IT OUT.
UM, AND SO THOSE ARE THE KIND OF THINGS THAT I THINK WE ALL SHOULD BE ON THE SAME PAGE AS, SO THAT WHEN WE ENDEAVOR ON THESE TYPES OF THINGS, WE'RE ALL LOOKING AT BEST PRACTICES AND FOLLOWING, YOU KNOW, INTERACTING WITH OTHER AGENCIES AND SEEING HOW THEY DO IT.
UM, JUST SO THAT WE HAVE ALL OF THESE THINGS.
'CAUSE I THINK THIS SORT OF CAME FORWARD AS A SURPRISE FOR A LOT OF OUR MEMBERS WHO FEEL LIKE THEY'RE NOT HAVING THEIR QUESTIONS ANSWERED.
AND, AND PERHAPS THAT'S SOMETHING THAT IF WE HAD A CONSULTANT, FOR EXAMPLE, MAYBE THAT'S SOMETHING THEY WOULD ALSO FACILITATE AND, AND ROLL OUT FOR US.
UM, SO I'M JUST GETTING A LOT OF FEEDBACK FROM OUR MEMBERS OF LIKE NERVOUSNESS AND CONCERN AND FEELING LIKE THEY DON'T KNOW WHAT'S GOING ON AND IT'S HAPPENING.
AND, YOU KNOW, THERE WASN'T ANY INTERACTION.
I'VE GOTTEN A LOT OF QUESTIONS.
UM, WE'LL NOW HAVE EMPOWER, THEY'RE GONNA DO A LITTLE OVERVIEW OF, OF THEIR SERVICES, RIGHT.
MAYBE NOT THEIR FULL SERVICES, BUT, UM, TALK A LITTLE BIT ABOUT WHO THEY ARE, WHAT THEIR EXPERIENCE IS.
UM, SO I THINK THAT'S IN OUR HAND OUT, OR AT LEAST CONNIE SENT IT TO US.
UM, SO, SO MAYBE WE TURN IT OVER TO THEM AND THEN AFTER THEY, UM, PROVIDE US WITH THEIR OVERVIEW MM-HMM.
AND I DON'T KNOW, UH, I, WE'LL START WITH INTRODUCTIONS, I GUESS.
I AM INVESTMENT DIRECTOR WITH EMPOWER INVESTMENTS.
UM, SO I, I THINK I'LL PROBABLY BE HAVING THE, THE, THE BULK OF THESE SPEAKING TODAY, IF WE'RE LOOKING AT THE, THE INVESTMENT POLICY AND THE, AND, AND THE SUGGESTED LINEUP.
UM, JOHN MCANDREW, UM, ONE OF OUR SALES DIRECTORS, INTERNAL SALES DIRECTORS IS WITH US.
ERIC LEVITT, WHO I THINK PROBABLY YOU'VE MET BEFORE.
I THINK YOU'VE MET PROBABLY ERIC AND JOHN, WHO IS OUR, ERIC IS OUR, OUR SALES DIRECTOR FOR THE, FOR THE WEST REGION.
UM, WE'RE HERE TO ANSWER, YOU KNOW, WHATEVER WE CAN, UM, DEPENDING ON WHERE YOU GUYS WANNA START.
DO YOU WANNA START WITH A LITTLE BIT OVERVIEW OF EMPOWER, I THINK THAT WOULD, AND THEN GET INVESTMENTS? YEAH, I THINK THAT WOULD BE VERY HELPFUL.
UM, JOHN, ERIC, DO YOU WANT TO HIT THAT? YEAH.
UH, LIKE BILL SAID, I AM, UH, INTERNAL, UH, NEW BUSINESS, UM, OPPORTUNITIES WHEN THEY COME IN.
SO I'VE WORKED WITH DEB THROUGH THE RFP PROCESS.
UH, THEN, UH, WE DID OUR FINALS PRESENTATION FOR DEB AND THE TEAM.
UM, AND THEN WE'LL BE INVOLVED IN THE ONGOING TRANSITION OVER, OVER TO EMPOWER AS WELL.
UH, SO, UH, JUST A, AN OVERVIEW OF EMPOWER.
UM, YOU KNOW, WE ARE THE SECOND LARGEST, UM, RETIREMENT PLAN PROVIDER IN THE COUNTRY, UM, JUST BEHIND FIDELITY.
UM, WE WERE FORMERLY KNOWN AS, UH, GREAT WEST INVESTMENTS BACK IN THE DAY.
UM, WE HAD THE NAME CHANGE TO NAME OUR RETIREMENT BUSINESS TO EMPOWER, UH, A FEW YEARS BACK.
SO, UH, THAT'S WHERE THE EMPOWER NAME CAME FROM.
UM, BUT WE ARE ALSO THE LARGEST GOVERNMENT PROVIDER, UH, IN THE COUNTRY AS WELL.
UH, SO, UH, VERY FAMILIAR WORKING WITH PARK DISTRICTS LIKE YOURSELF.
UM, AND, UM, REALLY LOOKING FORWARD TO GETTING INTO THINGS HERE AND, AND, UM, AND, UH, WORKING WITH YOU THROUGH THE TRANSITION.
[00:20:02]
SORRY, HAD A COUGH THERE A LITTLE BIT.UH, ERIC, IS THERE ANYTHING THAT YOU WANNA ADD? YOU'RE ON MUTE, ERIC, THERE, YOU'RE, SORRY, I'M ON MUTE.
NO, UH, I, UH, BASICALLY JUST EXCITED TO HAVE THIS OPPORTUNITY TO WORK WITH, WITH YOU, UM, AT, AT EAST BAY.
AND, UM, YOU KNOW, I THINK TODAY WE'RE REALLY GONNA TALK ABOUT THE INVESTMENT POLICY STATEMENT, UM, THE DRAFTING OF THAT, UM, YOU KNOW, HOW WE WORK WITH OTHER, UM, ENTITIES LIKE YOURSELF, UM, IN CREATING THESE.
I I I, I DO BELIEVE WHAT YOU, YOU MENTIONED EARLIER IS, IS, IS, YOU KNOW, THE, THE DOCUMENT IS SOMETHING THAT WE PROVIDED, BUT IT'S SOMETHING THAT YOU DO, YOU KNOW, YOU REALLY WILL WANT TO OWN AND, AND WORK THROUGH AND UNDERSTAND, UM, AS, AS, AS THAT POINT.
AND THAT'S KIND OF WHAT BILL IS HERE TO, YOU KNOW, WALK YOU THROUGH SO THAT YOU UNDERSTAND, UM, YOU KNOW, KIND OF THE DIFFERENT ELEMENTS OF AN INVESTMENT POLICY STATEMENT, WHICH AS, AS YOU MENTIONED, IS A BEST PRACTICE, UM, TO HAVE ONE OF THOSE.
AND THEN OBVIOUSLY, WE, UM, HAVE PROVIDED A, A PROPOSED LINEUP.
AND AGAIN, THAT IS SOMETHING THAT IS, UH, WE WORK WITH YOU, UM, IN, IN DEVELOPING WHAT MAKES YOU FEEL, UH, THE MOST COMFORTABLE, UH, FROM AN INVESTMENT STANDPOINT.
SO, UM, AGAIN, IF THERE'S ANY OTHER QUESTIONS, UH, RIGHT NOW, OTHERWISE, I'LL TURN IT OVER TO, TO BILL TO KIND OF START WALKING THROUGH HOW HE WORKS WITH COMMITTEES LIKE YOURSELF, UM, AND, UM, AND KIND OF THE DRAFT INVESTMENT POLICY STATEMENT, WALKING YOU THROUGH THAT, AND, UM, THE INVESTMENT LINEUP.
AND, UM, I KNOW THERE IS A, A PAGE IN THE, THE MINI PACKET OF THE BOARD ON, UM, I THINK IT'S PAGE 70 OF THE MINI PACKET THAT HAS A LITTLE BIT OF STATISTICS ON, ON EMPOWER, UM, AS FAR AS THE RECORD KEEPING SIDE OF THINGS.
BUT YEAH, SO, SO, UH, I THINK THE, THE BIG THING WE WERE GONNA TALK ABOUT TODAY IS, UM, MORE ON THE INVESTMENT SIDE.
SO I'LL START WITH THE INVESTMENT POLICY.
I'M TRYING TO, I'VE GOT THE, THE MINI PACKET OPEN.
I'M TRYING TO GET IT DISAPPEARING ON YOU.
SO, UH, AS, AS YOU GUYS MENTIONED, RIGHT, THE, THE INVESTOR POLICY IS, IS REALLY YOUR DOCUMENT TO US.
UM, UH, SO THIS IS THE WAY THAT YOU WANT TO, I DON'T WANNA SAY RUN THE PLAN, BUT THAT YOU WANT TO ADMINISTER THE INVESTMENT SIDE OF THE PLAN.
UM, HOWEVER, WE NEVER WANT TO JUST TURN, YOU KNOW, A, A A PLAN LOOSE AND SAY, OKAY, WELL GIVE US YOUR IPS WHEN YOU'VE NEVER HAD ONE.
SO, UH, THIS IS A, AN IPS TEMPLATE THAT WE USE.
UM, AS YOU SAID, THERE'S LOTS OF RESOURCES FROM NAG A, UM, FROM OTHER PLACES THAT HAVE OTHER IPSS.
SO IF THIS IS SOMETHING THAT ONCE YOU READ THROUGH IT, IF YOU WANT TO GO A DIFFERENT ROUTE AS FAR AS FORMAT, ABSOLUTELY WE CAN DO THAT.
UM, EVERYTHING HERE IS, IS CUSTOMIZABLE.
SO WE WENT THROUGH IT WITH DEB AND DAVID, I THINK, IF I REMEMBER, I THINK IT WAS, WAS IT DAVID, UM, TO FINE TUNE SOME POINTS, ADD, ADD SOME THINGS, TAKE A FEW THINGS AWAY.
UM, SO, BUT THIS IS ABSOLUTELY A, A, A FIRST DRAFT.
AND, AND I WON'T GO THROUGH, YOU KNOW, LINE BY LINE EVERYTHING, YOU KNOW, DURING, DURING THE COMMITTEE MEETING HERE.
BUT KIND OF THE MAJOR PARTS OF IT IS, YOU KNOW, WE, WE OUTLINE THE PLAN ON, ON PAGE TWO, THE PURPOSE OF THE IPS.
UM, WE DID PUT SOME INVESTMENT OBJECTIVES, IF THAT'S SOMETHING YOU WANNA CHANGE.
UM, WE CAN, WE, WE CAN CHANGE THAT.
WE CAN DELETE ANY OF THESE PARTS, HOWEVER YOU'D LIKE TO DO THAT.
UM, PART FOUR, ON PAGE THREE, UM, THE ROLES AND RESPONSIBILITIES.
UM, I, I'VE SEEN A LOT OF IPSS OVER, OVER MY, YOU KNOW, NEARLY THREE DECADES IN, IN, IN THIS BUSINESS.
UM, I, I SEE SOME THAT HAVE ROLES AND RESPONSIBILITIES OUTLINED.
I, I THINK IT'S, I THINK IT'S NICE, RIGHT, TO JUST KIND OF LEVEL SET WHATEVER.
BUT WHAT ALL OF THE DIFFERENT, THE DIFFERENT PARTIES THAT ARE TOUCHING THE PLAN ARE, ARE EXPECTED, UH, EXPECTED TO DO, UH, PART FIVE, WE GET INTO MORE KIND OF THE SELECTION AND, AND LATER THE MONITORING OF THE INVESTMENTS, WHICH TO ME IS THE BIG PART OF THIS, RIGHT? UM, WE'RE OUTLINING, UH, THE, THE APPROACH THAT, THAT THE COMMITTEE AND THE PARK DISTRICT IS GOING TO TAKE TOWARDS THE INVESTMENTS FOR THE, FOR THE DC PLAN.
SO THE BOTTOM OF PAGE FOUR, WE START TO OUTLINE, OKAY, WHAT KIND OF ASSET CLASSES ARE WE GONNA HAVE? UM, WHEN WE'RE SELECTING FUNDS, WHAT ARE WE LOOKING FOR AS FAR AS, YOU KNOW, WE WANT TO SEE A CONSISTENT STYLE.
WE WANNA SEE GOOD PERFORMANCE RELATIVES TO THEIR BENCHMARK AND THEIR PEER GROUP, UM, UH, FEES IN LINE WITH, WITH, WITH THE REST
[00:25:01]
OF THE REST OF THAT CATEGORY.AGAIN, ANY OF THIS CAN BE CHANGED, DELETED.
WE CAN ADD THINGS, HOWEVER YOU, YOU SEE FIT.
UM, BOTTOM OF PAGE FIVE, PART SIX, WE GET INTO THE, INTO THE MONITORING.
AND, AND, AND THAT'S WHERE WE SEE PROBABLY THE MOST APPLICATION OF THE IPS, RIGHT? THE REGULAR MONITORING THAT WE'RE GONNA DO OF THE, UM, OF THE FUNDS IN THE, IN, IN THE LINEUP.
UH, THE TOP OF PAGE SIX, UM, IS, IS WHERE WE SEE THE MOST VARIETY, I WOULD SAY, YOU KNOW, WHAT CRITERIA DOES THE COMMITTEE WANT TO USE, UM, TO MONITOR THE INVESTMENTS ON A, ON A REGULAR BASIS.
THE TIMEFRAME THAT WE HAD PUT IN IS SEMI-ANNUALLY.
UM, AS FAR AS A FORMAL REVIEW, UM, LIKE THE REVIEW THAT I INCLUDED THAT I'LL, I'LL GO THROUGH HERE IN, IN, IN JUST A FEW MINUTES.
UM, IF THAT'S SOMETHING THAT THE COMMITTEE WANTS TO DO ON A, ON A QUARTERLY BASIS, ABSOLUTELY FINE.
UH, WE, WE KIND OF STARTED WITH SEMI-ANNUAL.
UM, I, I WOULD SAY OF ALL THE PLANS THAT I WORK WITH, UM, THEY'RE ALL EITHER SEMI-ANNUAL OR QUARTERLY.
UM, IT USED TO BE SOME OF YOU YOU WOULD SEE ON AN ANNUAL BASIS, BUT TO ME THAT'S, THERE'S A LOT THAT CAN HAPPEN FROM, FROM YEAR TO YEAR.
SO I WOULD SUGGEST EITHER QUARTERLY OR, OR SEMI-ANNUALLY.
SO WE STARTED WITH SEMI-ANNUAL, UM, AND THE CRITERIA THAT I HAD INCLUDED, UM, YOU KNOW, WE'RE LOOKING FOR PERFORMANCE ABOVE MEDIAN FOR THE, FOR THE CATEGORY, FOR THEIR, FOR THEIR MORNINGSTAR PEER GROUP.
UM, YOU KNOW, WE WANT EXPENSES THAT ARE LESS THAN AVERAGE FOR THE, FOR THE PEER GROUP.
WE WANT RISK MEASURES THAT ARE KIND OF IN LINE, UM, WITH, WITH THE, THE REST OF THE CATEGORY, YOU KNOW, WE INCLUDE THE MORNINGSTAR RATING OF, OF THREE STARS, OR BETTER, IF YOU'RE NOT FAMILIAR WITH MORNINGSTAR, THEY RATE FUNDS, UM, ON A ONE TO FIVE STAR SCALE, UH, FIVE BEING THE BEST.
SO WE WANT, YOU KNOW, AT LEAST, UH, AT LEAST THREE STARS OR BETTER.
UM, AND THEN IT JUST A CONVI, UH, A CONSISTENT INVESTMENT STYLE AND STRATEGY.
THESE ARE FAIRLY BROAD CRITERIA, I THINK, WHICH IS ALWAYS SOMETHING THAT WE SUGGEST, JUST SO YOU'RE NOT HANDCUFFING YOURSELF INTO HAVING TO MAKE FUN CHANGES.
UM, IDEALLY, I, I, I'D LOVE FOR THE LINEUP TO STAY PRETTY MUCH LIKE IT IS FOR THE NEXT, YOU KNOW, SEVERAL YEARS.
UM, THAT DOESN'T NORMALLY WORK OUT, RIGHT? YOU KNOW, WHEN YOU'VE GOT A LIST OF, OF 20 OR 25 FUNDS, AT SOME POINT SOMETHING'S GOING TO HAPPEN.
YOU KNOW, FUNDS WILL UNDERPERFORM, YOU'LL HAVE A MANAGER CHANGE THINGS ALONG THAT LINE, AND IT BECOMES NECESSARY TO MAKE A CHANGE.
BUT WE DON'T WANT TO FORCE THE COMMITTEE INTO HAVING TO MAKE CHANGES ON A REAL REGULAR BASIS, JUST BECAUSE THE INVESTMENT POLICY SAYS, OH, WELL, WE'VE GOTTA HAVE, I, I WANT PERFORMANCE IN THE TOP QUARTILE OF ALL PEERS FOR, YOU KNOW, THREE AND FIVE YEARS, OR, OR, OR, OR SOMETHING LIKE THAT.
SO WE WANT THE CRITERIA IN THERE, BUT WE WANT IT TO BE FAIRLY LOOSE.
UM, THE COMMITTEE'S GOING TO LOOK AT IT ON A SEMI-ANNUAL OR QUARTERLY BASIS.
WHATEVER YOU GUYS END, END UP DECIDING.
UM, EMPOWER INVESTMENTS IS GOING TO LOOK AT IT ON A AT LEAST QUARTERLY BASIS.
UM, WE ACTUALLY HAVE A, UH, AN AREA OF EMPOWER INVESTMENTS, OUR INVESTMENT RESEARCH AREA, UH, THAT DOES NOTHING BUT THIRD PARTY, UH, INVESTMENT MANAGER RESEARCH.
UM, SO WE ARE CONTINUOUSLY TALKING TO, YOU KNOW, JANICE AND AMERICAN FUNDS AND, AND ALL OF THE DIFFERENT FUND FAMILIES.
WE DO A, A LITTLE OVER 400 MEETINGS A YEAR WITH THE, WITH THE DIFFERENT ASSET MANAGERS.
SO THE NICE THING ABOUT THE, THE SIZE AND SCALE OF EMPOWER IS WE HAVE ACCESS TO, TO THE ASSET MANAGERS PRETTY MUCH WHENEVER WE WANT, WHENEVER WE WANT TO GO VISIT OR, OR GET ON A CALL.
THEY'RE, THEY'RE, THEY'RE HAPPY TO DO THAT.
UM, SO WE WILL BE LOOKING AT THAT ON, ON OUR END.
AGAIN, WE JUST DON'T WANNA, WE DON'T WANNA MAKE THE CRITERIA TOO CONSTRICTING IN THE, IN THE IPS, BUT AGAIN, WE CAN CHANGE IT TO WHATEVER, WHATEVER YOU WOULD LIKE.
IF YOU HAVE A, YOU KNOW, REALLY A KIND OF A, A, A STRONG FEELING FOR THAT.
UH, THAT NEXT SECTION PART, PART SEVEN IS, YOU KNOW, KIND OF SPEAKS TO WHAT HAPPENS WHEN, WHEN WE DO LOSE CONFIDENCE IN, IN A FUND.
SO SAY IT'S A, IT'S, IT'S A, A LARGE CAP VALUE FUND, AND YOU KNOW, FOR WHATEVER REASON PERFORMANCE HAS REALLY LAGGED, UH, WE'VE SEEN A MANAGER CHANGE.
UH, THE FUND COMPANY ITSELF IS, IS, IS, UH, TAKEN OVER BY DIFFERENT ASSET MANAGERS.
YOU KNOW, SOMETHING ALONG THAT LINE.
UM, THOSE ARE THE TYPES OF THINGS THAT WE WOULD STEP IN AND SAY, HEY, WE WOULD SUGGEST MAKING THIS
[00:30:01]
CHANGE, UM, TO THE, TO THE FUND.AND, AND THIS JUST, UH, PART SEVEN JUST OUTLINES HOW THAT'S DONE.
UM, THAT YOU CAN MAKE THAT KIND OF CHANGE REALLY FOR, FOR WHATEVER REASON YOU SEE FIT.
AGAIN, WE TRY TO MAKE THAT LANGUAGE, SO, SO YOU CAN MAKE CHANGES WHEN, WHEN YOU THINK YOU NEED TO, UM, AND WHAT HAPPENS THAT, HOW THAT PROCESS WORKS, RIGHT? THAT, THAT THOSE ASSETS ARE AT AUTOMATICALLY, UM, MOVED FROM THE, YOU KNOW, I'LL CALL THE OLD FUND TO THE REPLACEMENT FUND AUTOMATICALLY BY EMPOWER.
AND THE PARTICIPANTS HAVE TO GO IN AND REDO ANYTHING, ANYTHING ALONG THAT LINE.
AND THEN I THINK PROBABLY THE VERY LAST SECTION THAT, THAT PART EIGHT, UM, JUST A, A, A MENTION ON THE SELF-DIRECTED BROKERAGE ACCOUNTS, UM, THAT THEY'RE AVAILABLE.
IT'S NOT, UM, UH, UH, UH, UNDER THE PURVIEW OF THE, OF THE COMMITTEE THERE, YOU KNOW, OUTSIDE HOLDINGS.
THAT'S KIND OF THE MAJOR PARTS OF THE IPS.
UM, JUST KIND OF FIRST BLUSH, ANY, ANY QUESTIONS OR, OR ANYTHING, ANYTHING COME TOP OF MIND.
AND, UM, I'M WONDERING IF, FOR OUR PARTICIPANTS, UM, ANY PARTICIPANTS WHO MIGHT BE WATCHING WHO DON'T HAVE ACCESS TO THESE MATERIALS, MAYBE WE SHOULD, I DON'T KNOW IF YOU CAN DO THAT.
CAN WE CLOSE, UH, CONNIE, BUT IF WE CAN PULL UP THE, UH, INVESTMENT POLICY SO THAT WE CAN WALK THROUGH IT ON SCREEN? IS THAT POSSIBLE? I THINK IN, SORRY.
AND I, I'M NOT SURE, IT SEEMS LIKE DOCUMENTS THAT WE REVIEW SHOULD BE PART OF THE BOARD PACKET.
UM, I THINK THEY WERE, BUT JUST FOR PEOPLE WHO ARE TUNING IN TODAY.
I JUST WANNA MAKE SURE AREN'T LIKE, OKAY.
I WASN'T SURE IF THERE WAS A PACKET.
I'M PRETTY SURE THEY WERE SENT OUT TO EVERYBODY.
I MEAN, UM, SENT OUT TO PUT ON, UM, ON PUBLICLY.
SO IF, IF THEY ARE WATCHING, THEY CAN PULL IT UP ON THE WEBSITE.
BUT I THINK WEBSITE, IT'D BE HELPFUL AS WE'RE TALKING THROUGH COURSE.
SO THEY, LIKE I'M LOOKING AT THIS SENTENCE.
YOU'RE LOOKING AT THAT SENTENCE.
CAN EVERYBODY, YEAH, I GUESS WE CAN SEE THAT, IF YOU CAN SEE THAT.
BILL, IS THAT, CAN YOU SEE THE IPS RIGHT NOW? UM, I CAN.
THAT WAS A VERY HELPFUL OVERVIEW AND I JUST WANTED TO GIVE A BIT MORE CONTEXT OF, UM, UH, BILL MENTIONED THAT IT HAD BEEN REVIEWED BY ME AND, AND DAVID.
SO DAVID WAS DAVID SUMNER, UM, WHO'S OUR INTERNAL AUDITOR.
I ASKED HIM TO, TO TAKE A LOOK AT THIS.
AND SO HE, AND, AND MONICA ALSO WAS AT THAT MEETING AND WE JUST DID A REVIEW OF THE IPSS, UH, TO TALK THROUGH LIKE, WHAT, WHAT DO WE THINK IS THE BEST PRACTICE THAT WE WANNA PUT IN HERE? AND WE DID MAKE A FEW TWEAKS, UM, AND I CAN SORT OF TALK YOU THROUGH WHAT, WHAT I THOUGHT WERE THE IMPORTANT POINTS.
AND, UM, OR IF YOU GUYS WANT, I DON'T KNOW IF YOU HAD A CHANCE TO READ IT AND HAD QUESTIONS OR ANYTHING LIKE THAT.
MAYBE WE JUST TAKE IT FROM THE TOP AND JUST SCROLL THROUGH.
LIKE A GOOD WAY TO DO IT? OKAY.
CAN I CLARIFY WHAT IS RHS PLAN? A RETIREE HEALTH PLAN.
SO RETIREE HEALTH SAVINGS PLAN.
UM, AND SO THAT'S, UH, A VERY SMALL PLAN.
IT'S AVAILABLE TO PUBLIC SAFETY.
IF YOU HAVE 20 OR MORE YEARS OF SERVICE AT RETIREMENT, YOU'RE ALLOWED TO PUT MONEY INTO YOUR RHS.
IS THAT RIGHT, MONICA? IT'S AVAILABLE AT THE POLICE ASSOCIATION MEMBERS.
WHO HAVE 20 PLUS YEARS OF SERVICE? IS THAT THE NEW, THE NEWER ONE? IS THAT SOMETHING NEW WE DID? NO, YOU'RE CONFUSING THAT WITH THE POR ACT ONE.
UM, THIS WAS A PLAN THAT'S BEEN PUT IN PLACE FOR MANY YEARS.
UM, AND SO 1% OF SICK LEAVE IS DIVERTED TO THIS RHS PLAN.
SO NOT NOT MANY, UM, PARTICIPANTS IN THE PLAN.
SO, UM, BUT WE ARE INCLUDING IT BECAUSE LET'S HAVE THIS IPS APPLY TO ALL OF THE DIFFERENT PLANS THAT ARE GONNA BE MANAGED BY EMPOWER.
ARE, ARE THERE ANY OTHERS THAT WE'RE MISSING
'CAUSE THAT'S THE FIRST ONE, THE FIRST TIME I'VE HEARD OF THAT ONE.
I, I, DO YOU WANNA BRING UP THE ROTH IRA NOW? I THINK LET'S FOCUS ON THE INVESTMENT POLICY AND, UM, YEAH, I THINK THAT WOULD BE, YEAH.
SO THE, UM, BILL ALREADY WALKED US THROUGH THIS, BUT NOW THAT WE'VE GOT IT UP ON THE SCREEN AND IF YOU GUYS HAVE ANY THOUGHTS OR QUESTIONS.
SO THE FIRST PART ONE IS JUST OVERVIEW.
WHAT, WHAT ARE WE TALKING ABOUT? WHAT DOES THIS IPS APPLY TO? AND SO IT'S JUST DESCRIBING THIS APPLIES TO OUR 4 57, 4 0 1 AND OUR RHS PLAN, UM, WHICH IS SPONSORED BY THE PARK DISTRICT AND, UM, THAT THIS IS A WAY FOR OUR EMPLOYEES TO, TO EASILY CONTRIBUTE TO THEIR SAVINGS.
UM, SO THAT'S, THAT'S THE POINT OF THIS SECTION IS JUST TO LIKE, GIVE YOU THE LAY OF THE LAND OF WHAT THIS IPS COVERS.
[00:35:01]
THAT SECTION OR THOUGHTS ON IT? ALL RIGHT.UH, SO PART TWO IS THE PURPOSE OF THE IPS.
AND AGAIN, JUST KIND OF GIVING YOU THE LAY OF THE LAND.
UM, SO THE IPS IS GONNA, I'LL JUST WALK THROUGH THE BULLET, DESCRIBE THE PLANS, INVESTMENT OBJECTIVES, UM, WHAT ARE THE ROLES OF OUR INVESTMENTS, UM, CRITERIA AND PROCEDURES FOR SELECTING OUR INVESTMENTS.
HOW DO WE MEASURE WHETHER THESE ARE THE RIGHT INVESTMENTS? AND THEN WHAT DO WE DO IF WE REALIZE THESE AREN'T THE RIGHT INVESTMENTS? SO THAT'S WHAT WHAT THIS IPS IS DOING.
ANY QUESTIONS OR THOUGHTS ON THAT? SO AGAIN, YEAH, THIS IS, THAT'S JUST LIKE A BROAD OVERVIEW AND THEN WE'RE NOW IT'S GONNA START GETTING MORE INTO THE NITTY GRITTY OF, OF, UM, OF WHAT'S, WHAT DOES OUR IPS DO? OKAY.
UM, SO WE WANT OUR INVESTMENT OPTIONS TO MAXIMIZE RETURNS WITHIN REASONABLE AND PRUDENT LEVELS OF RISK AND PROVIDE RETURNS COMPARABLE TO RETURNS FOR SIMILAR INVESTMENT OPTIONS.
WE WANT OUR INVESTMENT OPTIONS.
SO NUMBER TWO, WE WANT OUR INVESTMENT OPTIONS TO PROVIDE EXPOSURE TO A RANGE OF DIFFERENT OPPORTUNITIES.
SO WE WANT PEOPLE TO HAVE, YOU KNOW, SOME PEOPLE ARE MORE CONSERVATIVE, MAYBE THEY'RE CLOSER TO RETIREMENT.
SO MAYBE SOME PARTICIPANTS WANNA HAVE INVESTMENTS THAT HAVE A, A POSSIBILITY OF GREATER RETURNS, BUT THAT HAS GREATER RISK.
UM, SO WE WANNA HAVE A RANGE OF INVESTMENT OPPORTUNITIES, VARIOUS ASSET CLASSES.
UM, THAT'S WHAT THAT BULLET NUMBER TWO IS SAYING.
AND THEN LASTLY, WE WANT FEES AND EXPENSES TO BE REASONABLE, AND THAT LATER ON IT GETS MORE SPECIFIC.
SO THIS IS, THIS IS AGAIN, PRETTY GENERAL WHAT OUR INVESTMENT OBJECTIVES ARE.
UM, I HAD A NOTE HERE, LIKE YEAH.
TO SAY COMPETITIVE AND COMPETITIVE AS WELL.
'CAUSE I, I THINK REASONABLE IS NOT DEFINED.
I THINK SO, YOU KNOW, REASONABLE TO WHO, UM, AND I THINK COMPETITIVE IS SOMETHING THAT WE SHOULD MAKING SURE'S YEAH.
LATER ON WE USE THAT WORD COMPETITIVE.
SO LET'S, BILL, DID YOU HEAR THAT? IF WE COULD CHANGE THAT WORD ON THAT THIRD LINE ITEM INSTEAD OF FEES AND EXPENSES SHOULD BE COMPETITIVE.
GO AHEAD AND MAKE IT REASONABLE AND COMPETITIVE, I THINK.
ONE OTHER THING I WANNA ADD, UM, AND THIS IS BASED ON COMMENTS I'VE RECEIVED FROM PEOPLE, IS THAT THE THOUGHT IS THAT WE'RE REDUCING, WE LOOKED FOR AN INVEST OR A PARTNER BASED ON FEES THE DISTRICT WOULD PAY.
AND IT'S REALLY FEES THAT ALSO AFFECT THE INDIVIDUAL INVESTOR.
SO I DON'T KNOW IF WE WANT TO MENTION THAT IT'S, WE WEREN'T LOOKING JUST TO REDUCE OUR COSTS MM-HMM.
SO CAN WE ADD THAT FEES AND EXPENSES FOR BOTH THE AGENCY AND PARTICIPANTS? YEAH.
COULD, DID YOU GUYS HEAR THAT? UM, BILL, SO THE, THE QUESTION IS HOW DO WE, UM, CAPTURE IN THIS INVESTMENT OBJECTIVES? 'CAUSE THERE, THERE ARE SORT OF TWO PARTS TO FEES, RIGHT? THERE'S THE OVERALL PLAN FEES, WHAT EMPOWERS GETTING, UM, BASIS POINTS THAT THEY'RE GETTING FOR BEING THE PLAN ADMINISTRATOR.
AND THEN EACH INDIVID INDIVIDUAL INVESTMENT HAS ITS OWN COSTS AS WELL.
AND SO WHAT MONICA WAS SAYING IS LIKE, CAN YOU CAPTURE THAT WE WANT THOSE FEES TO BE, UM, REASONABLE AND COMPETITIVE ON BOTH SIDES.
IS THERE A WAY OF, OF FRAMING THAT IN THIS INVESTMENT OBJECTIVE SECTION? SURE.
I MEAN, I'M JUST PUTTING IT THAT COMPETITIVE AND REASONABLE FEES APPLY TO BOTH THE, THE PARK DISTRICT AND THE PLANS PARTICIPANTS.
SO I'LL, I'LL PHRASE IT SOME, I'LL WORK IT IN THERE SOMEHOW.
SECTION FOUR IS WHERE IT GETS INTO WHO DOES WHAT.
UM, AND YOU'LL SEE HERE THAT IT'S IN A FEW PLACES REFERS TO LIKE THE INVESTMENT COMMITTEE.
AND I, UM, I WANTED TO TALK THAT THROUGH WITH YOU GUYS 'CAUSE THIS IS, UH, SOMETHING THAT'S IMPORTANT FOR US TO, I BELIEVE THIS IS THE DEFERRED COMP ADVISORY COMMITTEE IS WHO WE WANT TO BE, UM, THE RESPONSIBLE, UM, UM, TO HAVE THIS RESPONSIBILITY.
BUT WHAT ARE, UM, PEOPLE'S THOUGHTS AND IS IT CLEAR WHAT I'M, WHAT I'M SAYING? YEAH, I SAY THAT VERY CLEARLY.
'CAUSE I, IT SOUNDS LIKE MOVING FORWARD TO BE, TAKE A LITTLE MORE ONUS ON HELPING ASSIST WITH EDUCATION WITH THE BOARD WHO WILL MAKE THE DECISION OF WHETHER TO MOVE FUNDS OR NOT.
BUT I THINK IT NEEDS TO BE DECLARED, YOU KNOW, IF THE COMMITTEE'S GONNA MAKE THAT RECOMMENDATION FOR FUNDS UNDERPERFORMING, WHO MAKES THAT DECLARATION? HEY, THIS IS WHAT WE'D LIKE TO SEE HAPPEN.
AND THE BOARD COULD THEN SAY, YES, WE AGREE AND THAT IT GETS
[00:40:01]
MOVED OR CHANGED.UNLESS, UNLESS I MEAN, IT SAYS LATER ON, THE COMMITTEE DOES HAVE THE ABILITY, BUT I DON'T SEE IT HAPPENING FOR US TO MAKE THAT DECISION WITHOUT THE BOARD'S APPROVAL, YOU KNOW, OUTRIGHT.
SO MAYBE WE GO THROUGH THIS, UM, A LITTLE BIT MORE SLOWLY.
SO, UM, SO THE PARTIES RESPONSIBLE ARE THE PLAN SPONSOR AND THE RETIREMENT PLAN COMMITTEE.
SO DO WE WANNA CHANGE RETIREMENT PLAN COMMITTEE TO BE THE DEFERRED COMP ADVISORY COMMITTEE? I THINK IT'S IMPORTANT 'CAUSE WE ARE ADVISORY, WE'RE NOT THE YEP.
I BILL, DID YOU CATCH THAT? SO THE COMMITTEE SHOULD BE LISTED AS DEFERRED COMP ADVISORY COMMITTEE.
DEFERRED COMP ADVISORY COMMITTEE IS THE OFFICIAL TITLE FOR, I'M TRYING TO REMEMBER TOO.
BEN, DO YOU HAPPEN TO REMEMBER AT THE CONFERENCES? LIKE, I FEEL LIKE SOME PEOPLE HAD TWO COMMITTEES.
ONE WAS THE OVERALL ADVISORY AND THERE WAS I THINK A SECOND INVESTMENT COMMITTEE.
I I FEEL LIKE THAT WAS KIND OF PRETTY COMMON.
AND I DON'T KNOW, UM, IF BILL, YOU ARE FAMILIAR WITH THAT OR IF YOU CAN TELL US A LITTLE BIT ABOUT HOW THAT WORKS IN OTHER AGENCIES THAT YOU'VE SEEN.
YEAH, KIND OF DEPENDING ON, I GUESS ON THE, ON HOW THE AGENCY'S STRUCTURED.
SO A LOT OF TIMES IT IS SIMILAR TO HOW YOU GUYS HAVE, RIGHT? IT'S, IT'S, IT'S A BOARD AND THEN A SUBCOMMITTEE.
UM, THERE ARE OTHER ENTITIES THAT WILL HAVE A, A COMMITTEE.
SO SAY A RETIREMENT COMMITTEE AND THEN A SUBCOMMITTEE OF THE DEFERRED COMP COMMITTEE, OR THIS IS THE, THE PENSION COMMITTEE.
UM, SO I THINK SIMILAR TO HOW YOU HAVE IT, HOW YOU ARE NOW WITH YOUR BOARD AND DEFERRED COMP ADVISORY COMMITTEE, THAT'S, THAT'S NORMALLY WHAT WE WOULD SEE.
MY THOUGHT IS THAT WE, WE'D ADD A LOT OF COMPLEXITY IF WE HAD A SUBCOMMITTEE THAT WE DON'T NEED.
I THINK WE KEEP IT WITH JUST THE, WELL, AND MY AND MY CONCERN TOO THOUGH IS, IS THE WORKLOAD BECAUSE WE'RE NOT EVEN GETTING DONE WHAT WE ALREADY HAVE TO GET DONE.
AND SO THAT'S MY CONCERN TOO, IS THAT HOW DO WE GET THIS WORK DONE ON TOP OF WHAT WE'RE ALREADY DOING? SO, WELL THIS IS I THINK, UM, WHAT, SO WE'RE GONNA HAVE THIS INVESTMENT POLICY IN PLACE.
AND THAT THE WAY IT'S WRITTEN IN HERE IS BI-ANNUALLY.
SO TWICE A YEAR WE COULD DO QUARTERLY AS WELL.
UM, REVIEWING THOSE INVESTMENTS.
I THINK WE HAVE QUARTERLY ON HERE AS WELL.
SO WE COULD DO QUARTERLY, BUT, SO IT'S ALREADY PART OF OUR WORK PLAN.
WE HAVEN'T DONE IT TO DO THIS.
FOR VERY, I THINK FOR VARIOUS REASONS WE HAVEN'T DONE IT.
BUT I, I DON'T BELIEVE THAT'S GOING, I DON'T BELIEVE THAT SHOULD BE AN ISSUE GOING FORWARD.
LIKE WE SHOULD BE STARTING TO LIKE GET IN MORE IN ALIGNMENT AND ON SCHEDULE WITH THINGS.
UM, YOU KNOW, A LOT OF OUR MEETINGS, FOR EXAMPLE, WE, A LOT OF OUR FOCUS WAS ON THE BYLAWS, WHICH I THINK NOW WITH THIS PLAN DOCUMENT MM-HMM.
SO IF, IF WE GET THIS IN PLACE, AND NOW THAT WE'RE ALL AGREE THAT WE'RE AN ADVISORY COMMITTEE MM-HMM.
SO, UM, BUT I DO WANNA CLARIFY TOO, 'CAUSE IT TALKS ABOUT THE PARK DISTRICT IS A NAMED FIDUCIARY, UM, BUT THERE IS STILL A FIDUCIARY RESPONSIBILITY OF THE COMMITTEE.
EVEN THOUGH IT'S ADVISORY, THERE IS STILL A, A REASONABLE FIDUCIARY RESPONSIBILITY.
IS THAT CORRECT? NO, I DO NOT BELIEVE THAT BECAUSE WE'RE AN ADVISORY COMMITTEE UHHUH, AND THAT WAS, SO THAT'S BEEN A LOT OF OUR DISCUSSION IS LIKE, ARE WE AN ADVISORY COMMITTEE OR ARE WE THE DEFERRED COMP COMMITTEE? RIGHT.
SO WE'RE AN ADVISORY COMMITTEE.
SO SHOULD IT SAY THE PARK DISTRICT BOARD OF DIRECTORS IS A NAME FIDUCIARY? RIGHT.
I MEAN I THINK THAT'S WHAT'S NOT CLEAR IS THE PARK DISTRICT.
WELL, SO, UH, I THINK, UM, ANYWHERE IT SAYS PARK DISTRICT, LIKE THE PARK DISTRICT'S BOARD IS RESPONSIBLE FOR THE PARK DISTRICT.
SO THAT WE DON'T NEED TO BE THAT SPECIFIC HERE.
LIKE, UM, WELL WE JUST FINISHED STATING AND, BUT MM-HMM.
SO I WOULD THINK THAT WOULD BE WORTH PUTTING IN THERE.
WHERE, SO, UM, WALK ME THROUGH WHERE YOU'D LIKE TO PUT IT, UM, WHERE IT SAYS PLAN SPONSOR AND RETIREMENT PLAN COMMITTEE.
SO WE'RE GONNA CHANGE THAT TO BE PLAN SPONSOR AND DCAC? NO.
UM, I WOULD SAY, UM, LIKE WHERE IT SAYS THE PARK, THE FIRST SENTENCE, PARK DISTRICT IS RESPONSIBLE.
WHAT THE SECOND SENTENCE? THE PARK DISTRICT IS THE NAME FIDUCIARY.
I WOULD JUST PUT BOARD OF DIRECTORS AFTER DISTRICT.
THE PARK DISTRICT BOARD OF DIRECTORS.
THAT'S ACCURATE, RIGHT? MM-HMM.
[00:45:01]
AND COMMITTEE ISN'T? I BELIEVE SO.SO I THINK THAT WOULD BE, JUST PUT IT THERE.
'CAUSE I, I THINK THAT'S KIND OF LIKE WHAT WE WERE JUST TALKING ABOUT, THAT THERE HAS, BECAUSE THAT, THAT WAS THE AMBIGUITY THAT WE HAD BEFORE WAS LIKE, WELL WHO'S THE PARK DISTRICT? IS IT, YOU KNOW, THE GENERAL MANAGER? IS IT IT COMMITTEE? SO LIKE I COULD SEE IT GETTING REALLY, 'CAUSE THEN ABOVE IT SAYS THE PARK DISTRICT'S RESPONSIBLE FOR BELOW OR IT CAN APPOINT A COMMITTEE, BUT THEN IT SAYS THE PARK DISTRICT IS NAMED A FIDUCIARY.
SO THEN IF THE PARK DISTRICT IS APPOINTING A COMMITTEE, YOU KNOW WHAT MEAN? SO THE PARK DISTRICT BOARD OF DIRECTORS IS A NAMED FIDUCIARY.
SO WHAT HAPPENS IF THAT CHANGES? 'CAUSE AGAIN, I DO WANNA POINT OUT LAST YEAR WE FO OR EARLIER THIS YEAR WE FOCUSED A LOT ON WHO THE FIDUCIARY MM-HMM.
SO IF THAT CHANGES, 'CAUSE I THINK THERE IS A CONCERN THAT THE BOARD OF DIRECTORS REMAIN THE FIDUCIARY, THEN MAYBE IT BE SOMEONE INTERNAL LIKE OUR CFO OR I DON'T, I DON'T REMEMBER.
WE WOULD THEN HAVE TO UPDATE OUR INVESTMENT POLICY.
SO HOW EASY IS IT TO DO THAT? VERY, IT, SO IT'S AT OUR DISCRETION AND IT'S WRITTEN IN HERE LATER, THAT WE NEED TO REVIEW THE INVESTMENT POLICY.
I HAD SAID EVERY FIVE YEARS, SO THAT WE ALREADY HAVE INVESTMENT POLICIES FOR OUR OWN FUNDS.
SO THE PARK DISTRICT HAS TWO INVESTMENT POLICIES ALREADY THAT WE REVIEW EVERY FIVE YEARS.
SO THIS I'M THINKING WOULD BE LIKE, LET'S FOLLOW THAT SAME PROTOCOL EVERY FIVE YEARS WE HAVE TO TAKE A LOOK AT THIS, WE'LL WRITE IT INTO THE POLICY.
UM, BUT IF SOMETHING SIGNIFICANT CHANGES, WE WOULD NEED TO COME BACK TO THE POLICY AND UPDATE IT.
WHO'S THE FIDUCIARY? THAT WOULD BE A A SOMETHING WE NEED TO UPDATE.
BUT SHOULDN'T BE HARD TO CHANGE THIS.
I MEAN, IF WE'RE MAKING A CHANGE THAT'S SIGNIFICANT, CHANGING THIS POLICY TO REFLECT THAT WOULD BE NOT A BIG DEAL.
SO LET'S MAKE SURE THAT MAKES SENSE.
SO IS THE BOARD OF DIRECTOR IS RESPONSIBLE FOR SELECTING AND APPOINTING THE PLAN'S TRUSTEE, THE RECORD KEEPER, INVESTMENT ADVISORY CONSULTANTS, AND IF DESIRED APPOINTING THE MEMBERS OF THE COMMITTEE? IS THAT CORRECT? IS THAT SOUND LIKE THAT'S WHAT THE BOARD WOULD BE DOING? I BELIEVE THAT'S THEIR RESPONSIBILITIES.
WELL, THE BOARD DOESN'T, DOESN'T APPOINT THE UNION AND RETIREE MEMBERS.
SO I THINK THAT'S A BIT INACCURATE THERE.
MAYBE JUST LET'S CLARIFY THAT, THAT THEY APPOINT THE COMMITTEE, THEY APPOINT.
SO THEY, WHEN THEY ESTABLISHED THE DEFERRED COMP ADVISORY COMMITTEE, THEY SAID IT'S GONNA BE ONE MEMBER FROM EACH OF THESE GROUPS.
AND SO MAYBE WE NEED TO CLARIFY, IT'S NOT THAT THEY'RE, YOU KNOW, PICKING THE INDIVIDUAL MEMBERS, BUT THAT THEY'RE IDENTIFYING HOW DO WE, HOW DO WE WANNA SAY THAT? I THINK IT'S JUST, UM, APPOINTING THE, THE MAKEUP OF THE COMMITTEE.
OR YOU COULD EVEN SAY WHO THE, WHICH PARTIES ARE REPRESENTED ON THE COMMITTEE TO MAKE IT MIGHT MAKE IT A TRI CLEARER AND APPOINTING OR DETERMINING WHICH RATHER THAN APPOINTING, DETERMINING, DETERMINING THE MAKEUP OF THE DETERMINING WHICH PARTIES ARE, I THINK, WHICH PARTIES TO ME SOUNDS LIKE THEY'RE PICKING PEOPLE I THINK'S POINT THE MAKEUP OF.
IT SEEMS TO BE LIKE VAGUE ENOUGH, BUT SPECIFIC ENOUGH.
YOU KNOW WHAT I MEAN? BECAUSE I THINK WHEN YOU GET INTO IT TOO, I'M ALRIGHT WITH THAT.
IT COULD BE COOL, YOU KNOW, THAT SOUNDS FINE.
AND SO THEN WHO'S RESPONSIBLE FOR MONITORING AND EVALUATING EACH OF THE SERVICE PROVIDER? IT APPOINTS? IS THAT THE BOARD OR IS THAT THE COMMITTEE? AH, GOOD QUESTION.
I THINK THAT WOULD BE THE COMMITTEE.
MY QUESTION WAS, UH, FOR, UH, THE RESPONSIBLE FOR MONITORING AND EVALUATING EACH OF THE SERVICE PROVIDERS, IS THAT THE BOARD OF DIRECTORS OR IS THAT THE COMMITTEE? I THINK THAT WOULD BE THE COMMITTEE.
WHAT DO YOU GUYS THINK? WHERE ARE WE AT? UM, SO THE LAST SENTENCE IN THAT PARAGRAPH WHERE IT SAYS THE PARK DISTRICT OR COMMITTEE IS RESPONSIBLE FOR MONITORING AND EVALUATING EACH OF THE SERVICE PROVIDERS.
IT APPOINTS, BUT DO WE APPOINT THE SERVICE PROVIDERS? NO, NO.
IT'S SAYING WE'RE RESPONSIBLE FOR MON IF, IF WE WRITE IT THIS WAY.
SO THEN THE COMMITTEE WOULD BE RESPONSIBLE FOR MONITORING AND EVALUATING EACH OF THE SERVICE PROVIDERS.
EACH OF THE SERVICE PROVIDERS APPOINTS.
SO THAT'S WHY I'M LIKE, OH, IT MEANING THE, OKAY, SO IT'S CHANGED THE IT TO THAT THE PARK DISTRICT APPOINTS YEAH.
OR APPOINTED BY THE PARK DISTRICT COMPANY BY THE BOARD OF DIRECTORS.
APPOINTED BY THE PARK DISTRICT BOARD OF DIRECTORS.
SO THE CODE, I'M, I'M TAKING NOTES BILL IN CASE YOU'RE NOT FOLLOWING THIS AND I CAN SIT ALONG TO YOU, BUT THE I APPRECIATE IT.
SO WHAT WAS, WHAT WAS UM, SAID IS THAT WE'RE GONNA MAKE THAT LAST SENTENCE OF THAT PARAGRAPH SAY THE COMMITTEE IS RESPONSIBLE FOR MONITORING AND EVALUATING EACH OF THE SERVICE PROVIDERS APPOINTED BY THE PARK DISTRICT'S BOARD OF DIRECTORS.
[00:50:02]
IS THAT GOOD? OKAY.AND THEN THE RESPONSIBILITIES OF THE, AND THEN I THINK THAT'S GONNA BE THE COMMITTEE ALSO INCLUDE PREPARING, MAINTAINING THE IPS DETERMINING APPROPRIATE INVESTMENT TYPES, SELECTING INVESTMENT OPTIONS, MONITORING INVESTMENT PERFORMANCE, AND PERIODICALLY MONITORING INVESTMENT, RECORD KEEPING AND ADMIN EXPENSES.
AND THEN I HAD RFP, UM, 'CAUSE UM, THIS TALKS ABOUT THE ONE THAT WE ALREADY HAVE.
SO IF THIS IS AN INVESTMENT POLICY STATEMENT, RIGHT.
THEN IT SHOULDN'T JUST BE SPECIFIC TO THE PLAN THAT WE CURRENTLY HAVE, BUT WE SHOULD ALSO BE RESPONSIBLE TO IN BE ENSURING COMPETITIVE RATES AND SERVICES.
THROUGH THE, I DON'T KNOW, THROUGH THE, YOU KNOW WHAT I MEAN? LIKE YEAH.
UM, LIKE, LIKE I FEEL LIKE IT IS OUR JOB TO ALSO, LIKE, IF WE'RE JUST TRYING TO MAKE SURE THAT THE PLAN IS DOING ALL THESE GREAT THINGS, BUT WE'RE ALSO SUPPOSED TO MAKE SURE THAT THE PLAN IS THE BEST FOR THE MEMBERS.
WHERE DO WE WANNA PUT THAT? MAYBE THAT'S A SEPARATE, UM, COULD THAT BE PART OF OUR BYLAWS THEN? YEAH.
I FEEL LIKE THE INVESTMENT POLICY STATEMENT IS ABOUT THE INVESTMENT.
IT IS, YOU KNOW, LIKE THIS IS THE COMPANY THAT'S PROVIDING THE INVESTMENTS.
SO WE SHOULD BE MAKING SURE THAT THE COMPANY PROVIDING THE INVESTMENT IS ALSO COMPETITIVE, RIGHT? LIKE YEAH.
UM, BUT IS THAT PART OF THE INVESTMENT POLICY? UM, 'CAUSE IT'S LIKE DOING AN RFP IS BILL.
HAVE YOU, HAVE YOU SEEN AN INVESTMENT POLICY THAT, THAT, UM, TALKS ABOUT DOING AN THAT, LIKE WHAT THE RE WHAT THE RFP OR RESPONSIBILITIES ARE OR? UM, NO.
UH, I, I DON'T NORMALLY SEE THAT IN THE, IN, NOT IN THE INVESTMENT POLICY.
I'M THINKING, I'M THINKING WE DO NEED TO COVER THAT, BUT IT'S IN OUR BYLAWS.
UM, SO PERIODICALLY MONITORING INVESTMENT, RECORD KEEPING AND MID ADMINISTRATIVE EXPENSES WITH THE PLAN.
SO LET'S SAY WE MONITOR THAT AND, AND WE'RE LIKE IN RE IS CRAZY OR SOMETHING LIKE, AND RECOMMENDING AN, UH, RFP.
IF, I MEAN, YOU KNOW, FOR EXAMPLE, IF WE DID ALL OF THESE THINGS AND WE WERE LIKE, WHOA, SOMETHING'S REALLY OFF HERE.
THIS IS, THIS IS NOT WORKING, THIS IS TERRIBLE SERV, SORRY, POWER
BUT YOU KNOW, LIKE WHATEVER, LIKE, LET'S JUST SAY THAT HAPPENED THAT I DO THINK IT IS OUR RESPONSIBILITY TO ENSURE THAT OUR RATES AND SERVICES ARE COMPETITIVE.
WE AND RECOMMEND APPROPRIATE CHANGES WITHOUT NECESSARILY MENTION IN THE RFP THAT WOULD BE INCLUDED RECOMMENDING APPROPRIATE CHANGES AS NEEDED.
IF NEEDED OR AS NEEDED BECAUSE JUST LEAVE IT AT A RECOMMEND APPROPRIATE, I MEAN APPROPRIATE N AS NEEDED.
SO THERE'S TO RECOMME MAGICAL ISSUE.
THAT'S FOR SPECIFIC INVESTMENT OPTIONS THOUGH THOUGH.
NOT FOR LIKE THE WHOLE, I'M JUST WONDERING OR MAYBE HERE, YOU KNOW, I DON'T KNOW.
I, SO MAYBE, MAYBE WE'LL ADD SOMETHING THERE ALSO, BUT I'D LIKE PETE'S SAYING, SO ON NUMBER FIVE IT'S GONNA SAY PERIODICALLY MONITORING INVESTMENT, RECORD KEEPING ADMINISTRATIVE EXPENSES AND RECOMMENDING APPROPRIATE CHANGES.
UM, AND THEN THE OTHER QUESTION I HAD WAS, SO, SO NOW THAT THIS ORIGINAL PARAGRAPH TALKS ABOUT THE BOARD OF DIRECTORS AND IT TALKS ABOUT THE COMMITTEE, IT SAYS WHAT THE COMMITTEE'S RESPONSIBLE FOR, BUT I'M NOT CLEAR WHAT THE BOARD IS RESPONSIBLE FOR, RIGHT? LIKE, I THINK WE TALKED ABOUT THIS TOO, LIKE, WELL, IT SAYS THEY'RE RES I THINK IT SAYS, SO WE JUST SAID PARK DISTRICT, THAT SENTENCE IS NOW GONNA SAY THE PARK DISTRICT BOARD OF DIRECTOR IS THE NAMED FIDUCIARY IS RESPONSIBLE FOR SELECTING AND APPOINTING THE PLANS TRUSTEE, THE RECORD KEEPER, INVESTMENT ADVISORY CONSULTANTS IF DESIRED.
AND IT WOULD BE NICE IF THAT WAS FINALLY, I COULD READ WHAT I WROTE THROUGH.
IT WOULD BE NICE IF THAT WAS LIKE ALSO IN NUMBERED FORM, YOU KNOW, MAKEUP.
I THINK THAT WOULD BE HELPFUL.
YOU KNOW WHAT I'M SAYING? SO IT'S LIKE THE PART, THE RESPONSIBILITIES OF THE BOARD OF DIRECTORS MAKE THIS INTO BULLET POINTS.
YEAH, I THINK THAT WOULD THE SAME WAY THE ONES DOWN HERE IS, RIGHT? BECAUSE I THINK THAT'S KIND OF A LOT OF THE DISCUSSIONS WE'VE HAD IS LIKE, WELL WHO DOES THIS? AND I THOUGHT WAS COMMITTEE THOUGHT WAS SUPPORT EASY TO SEE.
AND THAT WAY IT'S REALLY CLEAR WHO DOES WHAT.
AND THEN THAT LAST SENTENCE IS JUST SAYING THAT THE, THE TRUSTEE IS RESPONSIBLE FOR HOLDING, INVESTING ASSETS IN ACCORDANCE WITH THE TERMS OF THE TRUST AGREEMENT AND WHO'S THE TRUSTEE OR EMPOWER.
UM, WELL, LIKE, SO, BUT LIKE WHO IS IT BILL? IS IT JOHN? YOU KNOW, LIKE, UH, IT'S EMPOWER TRUST COMPANY SHOULD BE THE TRUSTEE AND IS THAT SPECIFIED SOMEWHERE HERE OR? IT'S NOT.
AND I THINK THE 10 INTENT IS THE POLICY.
[00:55:01]
IS, THIS IS OUR IPS THAT WE WOULD KEEP NO, REGARDLESS THE, REGARDLESS OF WHO OUR PROVIDER IS.UM, AND THE TRUST AGREEMENT IS, IS THE, THE CONTRACT AGREEMENT WITH EMPOWER? YEAH.
IT'S PART OF THAT MASTER CONTRACT THAT'S BEING REVIEWED RIGHT NOW.
SO ARE WE CALLING IT TRUST AGREEMENT OR ARE WE CALLING IT, I BELIEVE IT'S CALLED A TRUST AGREEMENT.
CAN YOU GUYS, UM, CAN YOU HEAR THAT QUESTION? IS THAT THE RIGHT TERM TRUST AGREEMENT? UM, YEAH, ERIC, I DON'T KNOW IF YOU WANNA WEIGH IT OR NOT.
UH, SO NORMALLY I THINK YOU HAVE THE RECORD KEEPING AGREEMENT AND THE TRUST AGREEMENT.
UM, OFFICIALLY THERE ARE TWO SEPARATE ENTITIES.
EMPOWER TRUST COMPANY SERVES AS THE TRUSTEE.
EMPOWER SERVES AS THE RECORD KEEPER.
SO THAT'S WHY THEY'RE, THEY'RE SEPARATED HERE, BUT IT WILL BE TWO SEPARATE, SEPARATE AGREEMENTS THAT WERE, YOU KNOW, PUTTING TO PUTTING TOGETHER ALL AT THE SAME TIME.
MY, AM I RIGHT ON THAT AREA? THAT, THAT IS CORRECT.
AND SO THAT IT'S, IT'S SPECIFIED CORRECTLY HERE.
UH, MASTER SERVICE AGREEMENT, AND THEN THE, UH, THE TRUST AGREEMENT ARE TWO SEPARATE AGREEMENTS.
'CAUSE THEY, THEY'RE TWO DIFFERENT FUNCTIONS.
DOES THAT NEED TO BE CAPITALIZED AS A SPECIFIC, YOU KNOW, SO THAT, SO THAT WHOEVER'S READING THIS CAN THEN REFER TO THAT AGREEMENT? I MEAN, THAT'S A SPECIFIC DOCUMENT, RIGHT? I THINK, AGAIN, LIKE IT'S A SPECIFIC DOCUMENT AND WE'RE NOT SAYING LIKE, EMPOWERS TRUST AGREEMENT, IN WHICH CASE YOU WOULD CAPITALIZE IT.
WE'RE JUST SAYING LIKE THE TRUST AGREEMENT, LIKE OKAY.
LIKE WHATEVER IT IS, WHATEVER, WHICHEVER ONE IT IS.
AND SO THEN, UM, TOP OF PAGE FOUR IS RESPONSIBLE FOR MAINTAINING AND UPDATING INDIVIDUAL ACCOUNT BALANCES, ET CETERA.
AND THEN, AND THEN WHAT DO YOU GUYS THINK ABOUT THIS CONSULTANT? I'M THINKING LEAVE IT IN, BUT WE'RE NOT CURRENTLY MM-HMM.
AND WE JUST KEEP IT IN HERE JUST IN CASE.
WOULD IT HELP TO IDENTIFY WHO THESE PEOPLE ARE AT THE VERY BEGINNING? SO I THINK WHAT WE'RE TALKING ABOUT DOING IS KEEPING IT GENERIC BECAUSE THIS IPS WOULD APPLY TO WHOMEVER OUR, STILL KEEP IT GENERIC, BUT JUST LIKE, OH, LIKE A DEFINITION SECTION TRUSTEE OR CUSTODIAN DEFERRED COMP PROVIDER.
THAT MIGHT BE DEFERRED COMP PROVIDER, WHOEVER IT IS.
OR EVEN A GLOSSARY OR SOMETHING.
ACTUALLY, THAT WOULD BE REALLY HELPFUL.
'CAUSE I THINK PART OF THE QUESTION IS WHO'S THE RECORD KEEPER? YEAH.
SO MAYBE WE HAVE AN APPENDIX A, IS THAT WHAT WE'RE, OR EVEN A FIRST PAGE, YOU KNOW HOW THEY HAVE LIKE DEFINITION YEAH.
ALTHOUGH THEN WE'D HAVE TO LIKE, SO THEN WE'D HAVE TO, BUT IF WE HAD AN APPENDIX, SO WE DON'T WANNA, I DON'T THINK WE WANNA WRITE IT INTO THE IPS
WELL, NO, BUT I MEAN, LIKE, IT WOULDN'T BE EMPOWER, IT WOULD JUST BE THE, OH, DEFERRED COMP PROVIDER.
LIKE, LIKE IN OTHER WORDS, WHEN, LIKE, FOR EXAMPLE, TRUST AGREEMENT IS THE AGREEMENT THAT, YOU KNOW, YOU KNOW WHAT I'M SAYING? NORMALLY, YOU KNOW, GENERALLY THIS IS THE SERVICE PROVIDER, THE RECORD KEEPER IS, YOU KNOW, BLAH, BLAH.
THE ENTITY THAT IS MAINTAINING THE ASSISTANCE TRUST, JUST SORT OF LIKE, SO PEOPLE CAN UNDERSTAND SO THAT IT'S APPLICABLE NO MATTER WHO IT IS.
BUT IT'S STILL CLEAR WHO THESE ROLES BELONG TO.
SO I THINK WHAT WE WANT IS A DEFINITION SECTION.
SO, SO THE RECORD KEEPER, OR WOULD THAT BE AT THE END, AT THE MOMENT IS IN POWER, CORRECT? YEAH, COULD BE EITHER.
UH, AND MAYBE THEY SHOULD BE REFERRED TO CONSISTENTLY AS DIFFERENT COMP PROVIDER OR SOMETHING LIKE THAT, THAT WOULD TAKE AWAY THAT, THAT'S ONE WAY OF MAKING IT CLEARER.
WOULD YOU SAY THAT AGAIN, PETE? SORRY.
WELL, UH, INSTEAD OF CALL REFERRING TO THEM AS THE RECORD KEEPER, WE COULD REFER TO THEM AS THE DEFERRED COM PROVIDER.
AND THEN THAT WOULD BE PRETTY CLEAR WHO THAT WAS.
WE AS RECORD KEEPER? I, I WASN'T EVEN A HUNDRED PERCENT SURE.
UM, I BELIEVE THAT THOSE TERMS ARE LIKE INDUSTRY STANDARDS, BUT YEAH, MAYBE BILL OR JOHN OR ERIC, IF YOU GUYS COULD, UH, I DUNNO IF YOU COULD HEAR THE QUESTION.
I'M ALWAYS WONDERING WHETHER THESE MICROPHONES WORK.
[01:00:01]
STANDARD.UM, I I, I WOULD BE AFRAID IF YOU, IF YOU SAID SOMETHING ALONG THE LINES OF DEFER COMP PROVIDERS, SOMETHING LIKE THAT, IT MIGHT GET CONFUSED WITH, WITH THE PARK DISTRICT, RIGHT? THAT IT'S THE PARK DISTRICT IS, IS PROVIDING THE PLAN.
UM, WE ARE DOING, AND EMPOWER IS DOING THE RECORD KEEPING SERVICING.
WELL, I WOULD JUST WANT TO MAKE IT THAT IF A NON, IF JUST AN ORDINARY PERSON, NOT AN PERSON IN THE INDUSTRY, WERE READING IT, THEY COULD LOOK AT THIS AND BE CLEAR ABOUT WHO IT IS AND MAYBE THE, THE DEFINITION, I THINK THE DEFINITION HELP.
I THINK THE DEFINITION DEFINITION WOULD TAKE CARE OF IT AS FAR AS I'M CONCERNED.
WE'RE BACK AT, UM, SELECTION OF INVESTMENTS.
UM, SO SELECTION OF INVESTMENT OPTIONS IS AMONG THE, AND THEN WE'LL SAY THE COMMITTEE'S RESPONSIBILITIES, THE CROSSING OFF THE YEAH, I THINK SO.
SO JUST TO BE CLEAR THOUGH, WE ADVISE ON THE SELECTION, BUT STILL THE BOARD OF DIRECTORS APPROVES IT, OR WHOEVER THE FIDUCIARY IS, CORRECT? YEAH.
I THINK WE WOULD NEED TO HAVE A PROCESS OF BRINGING THINGS TO THE BOARD, OR WE COULD SAY AMONG, UM, THE RECOMMENDATION OF THE SELECTION OF INVESTMENT OFF, I DON'T KNOW.
OR SOMETHING LIKE THAT, INSTEAD OF THIS SELECTION.
WELL, THAT'S SOMETHING WE'VE EVER, THIS COMMITTEE'S EVER DONE IN THE PAST.
SO WITH MISSION SQUARE, WE DIDN'T, THEY GAVE US THEIR STANDARD FUND LINEUP, AND WE DID NOT HAVE ANY DISCRETION TO CHOOSE.
AND SO THAT'S THE BIG DIFFERENCE NOW, IS THAT WE HAVE THAT ABILITY TO MAKE CHANGES, WHICH IS ALSO A RESPONSIBILITY.
BUT WE REALLY HAVEN'T HAD ANY TRAINING IN THAT REGARD.
THAT'S MY CONCERN IS, I MEAN, SOME OF YOU FOLKS MIGHT HAVE, BUT CERTAINLY NOT.
SO WE, UM, WOULD BE GUIDED BY OUR INVESTMENT POLICY, WHICH WE'RE FLESHING OUT NOW, AND GIVING OURSELVES VERY SPECIFIC.
I THINK THEY'RE GOING TO BE SPECIFIC CRITERIA FOR WHAT WE'RE LOOKING FOR IN THE INVESTMENT OPTIONS THAT WE OFFER.
AND THEN WE'RE GONNA HAVE QUARTERLY, OR YEAH, IT SOUNDS LIKE WE'RE GONNA LAND ON QUARTERLY REVIEW OF THE INVESTMENTS WE'VE SELECTED TO SAY, DO THESE MEET OUR CRITERIA THAT WE'VE LAID OUT IN OUR INVESTMENT POLICY? AND SO THAT'S HOW WE'LL KNOW IF WE'RE SUCCESSFUL OR NOT.
BUT ARE WE AS A COMMITTEE LAYING OUT THE OPTIONS FOR THE SPECIFIC INVESTMENTS? YES.
UH, WITH THE ADVICE FROM EMPOWER.
SO, SO WE ARE NOT DOING IT IN A, IN A VACUUM.
EMPOWER IS, AND, AND MAYBE I SHOULD TURN IT OVER TO YOU GUYS TO TALK ABOUT THE, UM, THE WAY THAT THIS PROCESS WORKS FOR, FOR PETE AND FOR EVERYONE SO THAT, SO THAT IT DOESN'T SEEM LIKE WE'RE DOING THIS ON OUR OWN.
I'D LIKE TO KNOW HOW THAT'S GOING TO HAPPENED.
AND, AND, AND, AND IT IS A CHANGE, RIGHT? LIKE, LIKE DEB SAID, YOU KNOW, IT'S MISSION SQUARE HAS DRIVEN EVERYTHING, UM, WHICH, WHICH USED TO BE THE NORM FOR, FOR DC PLANS.
YOU, YOU KNOW, YOU'D SIGN A, A GROUP ANNUITY CONTRACT, AND THE, THE RECORD KEEPER WOULD TAKE CARE OF, OF PUTTING IN WHATEVER, WHATEVER FUNDS THEY WANTED AND MAKING THOSE CHANGES.
UM, OVER THE YEARS, YOU KNOW, PLANS HAVE GOTTEN AWAY FROM THAT BECAUSE THEY DO WANT, THEY DO WANT MORE CONTROL, NOT JUST IN THE, UM, IN THE NUMBER OF, OF INVESTMENTS, BUT THE COST THAT IT, THE GROUP ANNUITY CONTRACT APPROACH TENDS TO BE PRETTY COSTLY FOR, FOR PARTICIPANTS.
UM, SO I I I, I I, I CAN'T REMEMBER THE LAST TIME THAT, THAT WE HAD A CLIENT COME IN AND, AND, AND, AND SAY, HEY, WE WANT TO GO THE GROUP ANNUITY ROUTE AND, AND, AND REALLY HAVE YOU GUYS DO EVERYTHING.
WE STILL HAVE PLANS WITH THAT, TAKE THAT APPROACH, BUT WE HAVEN'T SEEN A PLAN DO THAT AND, AND COME TO US FOR THAT FOR A, A NEW ANNUITY CONTRACT IN, IN, IN YEARS.
SO THE, THE WAY THAT THE PROCESS NORMALLY WORKS IS, UM, WE'RE AT THE BEGINNING OF THIS, RIGHT? SO, SO WE'RE, YOU'RE SETTING YOUR INVESTMENT POLICY.
UM, WE'RE GONNA USE THIS AS, AS OUR GUIDELINES.
UM, WE'VE GOT THE, UH, THE SUGGESTED LINEUP THAT, WE'LL, THAT WE'LL LOOK AT HERE IN A, IN A, IN A, IN A FEW MINUTES.
UM, AND THEN KIND OF FROM THAT, WE'RE GOING TO, WE'RE GONNA DO A REVIEW EVERY, WE HAD SAID SEMI-ANNUALLY IN HERE.
WHY DON'T WE DO QUARTERLY FOR NOW AT, AT, AT LEAST FOR A TIME.
SO EVERYBODY'S, UNTIL EVERYBODY'S COMFORTABLE.
UM, AND WE'RE GONNA LOOK AT ALL OF THE FUNDS IN THAT LINEUP, UM, VERSUS THE CRITERIA THAT ARE, THAT ARE HERE
[01:05:01]
IN THE, IN THE, IN THE IPS.SO I'M GOING TO BE YOUR, YOUR DEDICATED INVESTMENT DIRECTOR.
UM, SO YOU'RE GOING TO, YOU'RE GOING TO SEE AND AND HEAR FROM ME QUARTERLY IF, IF THAT'S, IF THAT'S HOW, HOW OFTEN WE'RE GONNA MEET.
UM, AND WE'RE GONNA GO THROUGH ALL OF THE FUNDS IN THE LINEUP.
I I'M GONNA, I'M GONNA SHOW, UH, PERFORMANCE OF EACH FUND VERSUS A MARKET BENCHMARK, UH, WHICH I THINK IT SAYS IN HERE SOMEWHERE, AND A PEER GROUP.
UM, WE'RE GONNA GO THROUGH ANY TYPE, ANY FUND THAT MAYBE IS A LITTLE BIT OF A TRAILING PERFORMANCE, THAT THEY'RE UNDERPERFORMING A LITTLE BIT.
I'M GONNA SAY IT'S UNDERPERFORMING.
UM, HERE'S WHY I'M, I'M NOT CONCERNED, OR HERE'S WHY I AM CONCERNED ABOUT THAT.
UM, AND THAT'S THE KIND OF DETAIL WE'RE GONNA GO THROUGH EVERY QUARTER.
UM, SO IF WE GET TO A POINT, I MEAN, AND I'M THINKING DOWN THE LINE.
SO, SO ONE OF THE FUNDS UNDERPERFORMS CONSISTENTLY, UM, WE LOSE CONFIDENCE IN THE MANAGER, WHATEVER.
AND, AND I'M GONNA COME TO YOU AND SAY, LOOK, THIS FUND, I, I'M, YOU KNOW, JANICE BALANCED, I'M MAKING A FUN, UM, HAS HAD REALLY CONSISTENT UNDER PERFORMANCE.
WE'VE SEEN SOME CHANGE IN THE MANAGER.
WE'VE SEEN THEIR STYLE DRIFT AWAY FROM, FROM REALLY THE, THE, THE TYPE OF FUND WHERE, WHERE WE ADDED IT IN THE PLAN.
WE THINK IT'S PROBABLY TIME TO, TO MAKE A CHANGE.
AND I'M GOING TO COME TO YOU WITH THREE OR FOUR FUNDS AS AN OPTION AND SAY, HERE ARE FUNDS IN THAT SAME CATEGORY.
HERE'S WHY WE REALLY LIKE THEM.
HERE'S THE DIFFERENCES BETWEEN THEM.
UM, I CAN'T, I CAN'T A HUNDRED PERCENT JUST SAY, LOOK, THIS IS THE ONE THAT YOU SHOULD USE.
BUT I'LL MAKE IT VERY CLEAR THAT, YOU KNOW, MY TOP SUGGESTION WOULD BE THIS ONE.
MY SECOND SUGGESTION WOULD BE THIS ONE.
SO, UM, IT'S GONNA BE FAIRLY DETAILED.
UM, I CERTAINLY WOULD SUGGEST IF, IF YOU WANT EXTRA TRAINING THINGS ALONG THAT LINE, UM, THAT'S, YOU KNOW, THAT'S AVAILABLE, YOU KNOW, IN, IN LOTS OF PLACES.
BUT SOME HOMEWORK ON YOUR OWN, I THINK IS ALWAYS, ALWAYS A GOOD THING.
BUT I'M GOING TO GIVE YOU A LOT OF DETAIL HERE TO BE ABLE TO MAKE DECISIONS ON THE LINEUP.
UM, ALL OF MY CLIENTS ARE, ARE GOVERNMENT CLIENTS, PUBLIC PLAN CLIENTS, UM, WITH EMPOWER.
SO I'M VERY USED TO WORKING IN KIND OF THIS STRUCTURE, RIGHT? WE, WE'VE GOT AN, AN ADVISORY COMMITTEE, UM, SOME PEOPLE ON THAT, ON THOSE ADVISORIES COMMITTEES HAVE, HAVE A LOT OF INVESTMENT EXPERIENCE.
SO, SO I'M GOING TO GEAR EVERYTHING TOWARDS, TOWARDS MY AUDIENCE, RIGHT? I'M, I'M GONNA HELP YOU GUYS MAKE THE BEST DECISIONS POSSIBLE.
UM, AND I'M ALWAYS GONNA BE HERE FOR ANY KIND OF QUESTIONS.
IF YOU'RE, IF YOU'VE GOT A CONCERN ABOUT THE IPS, IF YOU'VE GOT A CONCERN ABOUT A FUND, ANYTHING, ANYTHING INVOLVED WITH THE INVESTMENT SIDE OF THE PLAN, I AM HERE FOR YOUR, FOR YOUR RESOURCE FOR THAT.
THAT WAS MY LONG-WINDED ANSWER.
I HOPE, I HOPE THAT ANSWERED IT.
AND PETE, I MEAN, MY, MY INTERPRETATION OF WHAT, UH, BILL JUST SAID IS LIKE, WHEN WE HAD MERO, THEY HAD THE REPORT CARD, YOU KNOW, EVERY QUARTER.
AND SAME THING WE SAY IN THERE IS, THAT WAS OUR EVAL OF HOW THEY WERE DOING ON THOSE FUNDS.
AND WE DIDN'T HAVE TO WORRY ABOUT IT.
BUT WHAT IF ONE OF THOSE REPORT CARDS CAME BACK NEGATIVE, THEN ACTION.
WHAT DO YOU HAVE BEEN MADE FROM MISSION SQUARE OR THE DISTRICT? SO I THINK IT'S A SIMILAR MINDSET.
IT'S JUST, I THINK WE'D HAVE A LITTLE MORE INPUT DISCUSSION FROM EMPOWER NOW THAN, THAN THE PAST.
YOU SUMMED IT UP PERFECTLY AND THANKS.
I THINK, I THINK MY ONLY CONCERN IS THAT, UM, AGAIN, LIKE HAVING US RESPONSIBLE FOR ENSURING THAT THE PROVIDERS, I'M SORRY, THAT THE INVESTMENTS, YOU KNOW, MEET THE CRITERIA.
TERIA, I, I, I DO HAVE CONCERNS ABOUT, ABOUT TRAINING, BECAUSE I MEAN, SURE WE HAVE IN POWER TELLING US, LIKE, THIS IS GREAT, BUT LIKE, YOU KNOW, PART OF OUR ROLE IS TO ALSO, YOU KNOW, HAVE THAT CRITICAL EYE AND BE ABLE TO, TO SEE THINGS THAT MAYBE WE WOULDN'T SEE, YOU KNOW? SO, YOU KNOW, POTENTIALLY, YOU KNOW, THERE'S A CONFLICT OF INTEREST, RIGHT? AND POWER COULD BE LIKE, HEY, THIS, THIS ONE FUND MAKES A LOT OF MONEY FOR US, AND YOU KNOW, IT'S DOING GREAT, YOU KNOW, NO PROBLEMS. YOU KNOW? AND SO, SO THAT'S, THAT'S MY CONCERN, IS LIKE, HOW DO WE, YOU KNOW, WHEN WE HAD, UM, MISSION SQUARE, WE HAD MERO AS SORT OF A THIRD PARTY YEAH.
LOOKING AT THAT AND SAYING, HEY, WHAT THEY'RE TELLING YOU IS CORRECT.
AND I FEEL LIKE WE DON'T HAVE THAT NOW.
SO, SO THIS WAS SOMETHING THAT WE TALKED ABOUT IN THE RFE PROCESS.
LIKE, WHO'S GOING TO BE OUR FIDUCIARY ADVISING US ON INVESTMENTS AND EMPOWER, UNLIKE MISSION SQUARE.
[01:10:01]
THAT SAID, WE ARE NOT GOING TO BE A FIDUCIARY.WE DO NOT ACCEPT THAT RESPONSIBILITY.
WE ACTUALLY KNOW WE HAVE A CONFLICT OF INTEREST.
UM, AND EMPOWER IS IS SAYING THAT THEY WILL ACT AS A FIDUCIARY.
SO THEY'RE GOING TO GIVE US INVESTMENT ADVICE THAT IS IN OUR BEST INTEREST, NOT IN THEIR BEST INTEREST.
IS THAT POSSIBLE
UM, IN THEIR PROPOSAL HAVE SAID THAT THEY WOULD SERVE IN THAT CAPACITY TO US.
IT'S SO, SO WE, UM, WE AGREED TO SERVE AS, UM, AS AN, AS AN INVESTMENT ADVISOR.
YOU KNOW, IN, IN ERISA WORLD, IT'S, IT'S NORMALLY REFERRED TO AS THE 3 21, IF ANYBODY'S FAMILIAR WITH THAT.
SO WE'RE, WE'RE KIND OF THE CO-FIDUCIARY WITH THE, UM, WITH THE, THE BOARD, THE PARK DISTRICT BOARD.
UM, SO IT'S NOT A CASE WHERE WE HAVE COMPLETE CONTROL OVER THE INVESTMENT LINEUP, WHICH I ABSOLUTELY DON'T THINK YOU WANT.
UM, BUT WE ARE SIGNING ON AS A, AS A CO-FIDUCIARY.
SO THE BIG THING ON, ON THE FIDUCIARY SIDE, AND, AND WE ACTUALLY WILL DO THIS, WE'LL, WE'LL COME OUT AND DO FIDUCIARY TRAINING FOR, FOR THE BOARD, FOR THE COMMITTEE, FOR THE BOARD.
UM, WE, WE'VE DONE THIS IN THE PAST FOR, FOR LOTS OF PLANS, UM, DOCUMENTATION.
AND, AND THAT'S THE ONE THING THAT THEY, THAT OUR, OUR, OUR LEGAL SIDE WILL SAY DOCUMENT EVERYTHING.
SO IF, IF, IF, LIKE, LIKE BEN SAID, THAT SCORECARD THAT WE'RE GONNA HAVE ON THE INVESTMENTS, IF, IF EVERYTHING IS PASSING KIND OF THE CRITERIA, EVERYTHING'S, EVERYTHING'S FINE, RIGHT? FROM A FIDUCIARY STANDPOINT, IF SOMETHING ISN'T NOTING WHY IT'S NOT, UM, DOCUMENTING WHY WE ARE OR YOU ARE OR NOT, KEEPING A A, A FUND IN THE PLAN IS THE BIG THING FROM A FIDUCIARY STANDPOINT.
IT'S NOT WHETHER THE, THE FUND PERFORMS AT A CERTAIN LEVEL.
IT'S NOT WHETHER IT BEATS, UM, UH, THE, THE MAJORITY OF THE PEERS IN THE, IN THE PEER GROUP.
UH, THE BIG THING TO DOCUMENT IS YOU'RE FOLLOWING YOUR IPS, AND AS LONG AS THE IPS IS, IS REASONABLE AND YOU'RE FOLLOWING IT, THAT'S YOUR, THAT'S YOUR BIGGEST CONCERN FROM A, FROM A FIDUCIARY STANDPOINT.
UM, YOU GUYS GOOD TO CONTINUE? OR? UM, WELL, I THINK QUESTIONS, WELL, WE KNOW SOME, I DON'T KNOW IF THIS IS THE TIME AND PLACE, BUT WE OUGHT TO REVISIT YEAH.
MEADOW'S TRAINING CONCERNS OF CHARLES O MINE.
MEADOW'S TRAINING CONCERNS OF, IF WE'RE GONNA BE DOING THIS, THIS KIND OF REVIEW AND MAKING RECOMMENDATIONS, WE SHOULD SEE WHAT KIND OF TRAINING IS AVAILABLE OR MAYBE PARTICIPATE IN THE YEAH.
IF EMPOWER IS GONNA DO A TRAINING, A FIDUCIARY TRAINING FOR THE BOARD, WE CAN BE SITTING IN THE BACK, PUT THAT ON OUR WORK PLAN.
I KNOW WE'RE GONNA TALK ABOUT OUR WORK PLAN LATER, UH, AND THE AGENDA, HOPEFULLY WE'LL GET TO THAT.
UM, LET'S PUT THAT ON OUR, OUR WORK PLAN TO, IN OUR NEXT COMMITTEE MEETING, MAYBE FIDUCIARY TRAINING.
AND I THINK, I THINK I'D LIKE TO GET BETTER CLARITY ON THE DIFFERENCE BETWEEN MISSION SQUARE FIDUCIARY RESPONSIBILITY AND EMPOWERS, BECAUSE I, I DID SEE THAT IN THE BOARD MATERIAL, AND I DIDN'T QUITE UNDERSTAND THE DIFFERENCE BECAUSE I THINK MISSION SQUARE STILL HAS TO ACT AS A FIDUCIARY.
SO I DIDN'T QUITE SEE THE DIFFERENCE AS, UM, HOW, AND AGAIN, I STILL, I STILL, IT STILL SEEMS ODD TO HAVE A FIDUCIARY THAT, I MEAN, I MEAN, I GUESS THE QUESTION LIKE, FOR EMPOWER IS LIKE, SO WHAT DO YOU DO WHEN YOU KNOW YOUR CEO SAYS WE GOTTA GET OUR PERFORMANCE? YOU KNOW WHAT I MEAN? LIKE, I, I DON'T UNDERSTAND HOW YOU CAN BE A FIDUCIARY AND HAVE BOTH OF THOSE, UM, VALUES, YOU KNOW, AT THE SAME TIME, YOU KNOW, HAVE A, A COMPANY THAT THAT'S A PROFITABLE COMPANY AND ALSO BE A FIDUCIARY THAT, UM, MAKES THE BEST DECISIONS FOR MM-HMM.
I CAN TELL YOU THAT THEY'RE, THEY'RE GOING TO BE OUR CO-FIDUCIARY, SO THEY'RE LIKE, THIS IS GOING TO BE DOCUMENTED.
AND THAT'S WHY WE HAD TO PAY WHOEVER IT WAS, LIKE ONE ADDITIONAL BASIS POINT FOR ONE AND A HALF.
I FORGET NOW FOR MESERO TO COME IN AND TAKE ON THAT ROLE FOR US, BECAUSE WE, BECAUSE MISSION SQUARE SAID THEY WOULD NOT MM-HMM.
UM, SO, UM, I MEAN, I, YEAH, I MEAN, I JUST LIKE, I KNOW THAT SOUNDS LIKE, YOU KNOW, OH, THEY WOULDN'T AND EMPOWER WILL, BUT I'M LIKE, YOU KNOW, I STILL, I JUST STILL HAVE THOSE CONCERNS AND I THINK THAT'S WHERE I'M MM-HMM,
[01:15:01]
I, I THINK YOU GUYS ARE RAISING GREAT QUESTIONS ABOUT LIKE, US GETTING TRAINING, AND, UM, I THINK WE'RE MAKING SOME REALLY GOOD PROGRESS AT CLARIFYING IN THIS IPS WHO DOES WHAT, WHICH IS SOMETHING WE HAVE STRUGGLED WITH.
AND SO ONCE WE HAVE THIS ALL DOCUMENTED, TAKE A STEP BACK, WE'LL LOOK AT IT, WE'LL HAVE LIKE A, A FINAL IPS FIRST TO LOOK AT AND, AND WE CAN SAY LIKE, DO WE FEEL COMFORTABLE THAT EVERYTHING IS OUTLINED AND THAT WE, WE KNOW WHAT OUR COMMITTEE RESPONSIBILITY IS AND WHAT OUR, YOU KNOW, WHAT, WHAT ROLE WE'RE PERFORMING AND ARE WE COMFORTABLE WITH IT? DOES THAT SOUND GOOD? MM-HMM,
SO, SO WE ARE BACK TO SECTION FIVE HERE.
UM, SO SELECTION OF INVESTMENT OPTIONS, OH NO, WE HAD A DIFFERENT WORD.
THE, UM, INSTEAD OF SELECTION, WE WERE GONNA SAY RECOMMENDATION OF INVESTMENT OPTIONS, UM, IS, LEMME SEE AMONG THE COMMITTEE'S RESPONSIBILITY.
WELL, I MEAN, OKAY, SO THEN I GUESS THAT'S THE QUESTION IS LIKE, HOW DO, HOW IS THIS WORKING? SO WE, SO WE ARE GONNA MAKE, I THINK WHAT WE WERE TALKING ABOUT IS WE ARE GOING TO BE MAKING A RECOMMENDATION AND THEN WE WILL BRING IT TO THE BOARD TO APPROVE.
SO WE JUST NEED TO OUTLINE THIS HERE.
SO THE RECOMMENDATION OF INVESTMENT, THIS IS, WELL, LET ME FINISH THIS SENTENCE AND THEN YOU CAN TELL ME IF YOU THINK IT WORKS.
THE RECOMMENDATION OF INVESTMENT OPTIONS OFFERED INTO THE PLAN IS AMONG THE COMMITTEE'S RESPONSIBILITIES.
UM, AND THEN SOMETHING LIKE TO BE RECOMMENDED TO THE BOARD, UM, OR MAYBE SELECTION OR APPROVAL OF IT IS THE RESPONSIBILITY AND TO BE APPROVED BY THE, OR THE APPROVAL OF, SO IN OTHER WORDS, THE SELECTION, THE RECOMMENDATION OF THE INVESTMENT OPTIONS, AND THEN THE, TO BE APPROVED BY THE, THE APPROVAL DISTRICT.
THE APPROVAL IS, IS AMONG THE BOARD OF DIRECTORS RESPONSIBILITIES OR SOMETHING TO BE APPROVED BY THE PARK DISTRICT BOARD OF DIRECTORS.
UM, YEAH, I THINK, I THINK THAT'S WHAT I'M WONDERING.
SO WE HAVE 10 INVESTMENT OPTIONS, OR, OR WE HAVE 15 AND WE'RE, WE GOTTA PICK 10, LET'S SAY.
SO WE PICK 10 AND THEN, UM, WE RECOMMEND THOSE TO THE BOARD.
AND THEN WE CAN'T CHANGE ANY OF THAT.
WITHOUT GOING BEFORE THE BOARD AGAIN.
SO LET'S SAY WE'RE DOING OUR QUARTERLY REVIEW.
ONE OF THE INVESTMENTS IS NOT MM-HMM.
WE WOULD THEN NEED TO HAVE A PROCESS TO BRING THAT TO THE BOARD.
AND IF WE'RE REALLY SERIOUS PROBLEM, PRESUMABLY WE COULD DO THAT ON AN EXPEDITED BASIS.
EVERYTHING'S LIKE A MONTH OUT, SO, YEAH.
SO THEN ASSET CLASSES, UM, KIND OF REITERATING SOME STUFF THAT HAD BEEN SAID EARLIER, BUT NOW IT'S GETTING MORE SPECIFIC.
SO, UM, THE PARK DISTRICT, UH, WHAT DO YOU GUYS THINK ABOUT OR COMMITTEE DO WE CROSS OUT OR COMMITTEE THE PARK DISTRICT INTENDS FOR THE PLAN? SURE.
YOU, WE CROSS OUT COMMITTEE THERE AGAIN, I THINK PARK DISTRICT IS PROBLEMATIC 'CAUSE IT'S LIKE, HOW ABOUT THE INTENT FOR THE PLAN IS SURE.
THE INTENT FOR THE PLAN IS TO PROVIDE A RANGE OF INVESTMENT OPTIONS THAT WILL SPAN THE RISK SPECTRUM.
INVESTMENT AND PROVIDER SELECTION, AFTER DETERMINING THE ASSET CLASSES TO BE USED WILL BE EVALUATING THEM, UH, TAKING INTO ACCOUNT THE FOLLOWING CRITERIA.
SO NUMBER ONE, GENERAL, EACH INVESTMENT OPTION SHOULD HAVE CLEARLY STATED INVESTMENT OBJECTIVES.
A READILY ASCERTAINABLE MARKET VALUE OR FAIR VALUE TO STYLE CONSISTENCY.
THE INVESTMENT OPTION SHOULD BE CORRELATED TO ONE OF THE ASSET CLASSES USED BY THE PLAN.
AND IT SHOULD DEMONSTRATE ADHERENCE TO THE INVESTMENT OBJECTIVE.
THE INVESTMENT HOLDING SHOULD BE CONSISTENT WITH THE STYLE.
AND THEN THREE, PERFORMANCE RELATIVE TO BENCH BENCHMARK AND PEER GROUP PERFORMANCE SHOULD BE EVALUATED AGAINST MEDIAN RETURN FOR THE APPROPRIATE STYLE SPECIFIC BENCHMARK AND PEER GROUP OVER A SPECIFIED TIME PERIOD.
THE ANALYSIS SHOULDN'T INCORPORATE ANNUALIZED RETURNS OVER AN APPROPRIATE PERIOD.
AND SO THEN IT GETS MORE SPECIFIC, UM, LATER ON IN THE POLICY.
SO, UM, CAN I JUST GO BACK TO HERE? UM, YEAH.
THIS PART, DO WE NEED TO FIX THAT ONE? OH GOSH, YEAH.
AFTER THE PARTNERSHIP, IS IT THE COMMITTEE? YES.
'CAUSE IT JUST SAYS EVALUATE AND THEN STYLE, UM, STYLE CONSISTENCY.
I'M SURE I QUITE UNDERSTAND, LIKE, YEAH.
SO IT SAYS THE INVESTMENT OPTION SHOULD BE CORRELATED TO ONE OF THE ASSET CLASSES USING THE PLANET SHOULD DEMONSTRATE ANY FEARLESS, HEY, BILL, WILL YOU, SO MEADOWS SAYING, COULD YOU EXPLAIN THE STYLE CONSISTENCY? I WAS ABOUT TO DO THAT AND THEN MAKE MORE SENSE.
[01:20:01]
SO WE'RE LOOKING, STYLE CONSISTENCY REFERS TO THE INVESTMENT STYLE.SO IF, IF WE ADD, UM, A, A FUND AS A LARGE GROWTH FUND, THAT'S THE EXPOSURE WE WANT TO BE ABLE TO GIVE TO PARTICIPANTS.
WE'RE GONNA MONITOR THAT FUND TO MAKE SURE THAT IT IS CONTINUING TO GIVE, TO PROVIDE THAT EXPOSURE.
UM, IN THE SA THE INVESTMENT REVIEW, I INCLUDED, UM, AFTER THIS IN THE, IN, IN THE MINI PACKET, THERE'S A SECTION THAT SAYS, UH, STYLE ANALYSIS.
SO IS THAT LIKE, UM, LIKE MIDCAP GROWTH AND, UH, INDEX, LET'S SEE WHAT ELSE? I DON'T KNOW WHAT ELSE.
THERE'S, YEAH, SO I THINK THAT'S, YEAH, MID, MAYBE THAT MEANS MID GROWTH, SMALL VALUE THAT THE, THE, AS THE DIFFERENT ASSET CATEGORIES.
SO IT'S DIFFERENT ASSET CATEGORIES.
UM, IS THAT WHAT STYLE MEANS? OKAY.
SO MAYBE THAT'S SOMETHING WE COULD PUT IN THE GLOSSARY.
SO WE'RE ONTO PAGE FIVE AT THE TOP.
UM, MULTI-ASSET CLASS INVESTMENTS.
UM, SO FOR TARGET DATE, THIS IS TALKING ABOUT TARGET DATE FUNDS.
UM, WE'RE TALKING ABOUT LIKE HOW THE INVESTMENTS WILL BE EVALUATED.
UM, GLIDE PATH IS ANOTHER ONE.
UM, DO YOU GUYS HAVE A DEFINITION OF GLIDE PATH? SURE.
SO IF, IF YOU THINK OF, UM, UH, THE TARGET DATE FUND FAMILY AS A WHOLE, SO YOUR 20, SAY THE 2015 THROUGH YOUR 2060 FUND, THE AMOUNT OF EQUITY, THE, THE AMOUNT OF STOCKS, PERCENTAGE THAT ARE IN EACH ONE OF THOSE.
IF YOU THINK ABOUT THAT ON THE FAR LEFT, YOUR, YOUR 25 YEAR OLDS ARE IN THE 2060 FUND.
THEY'RE, AND I CAN SEE MY HAND, THEY'RE, UH, YOU KNOW, PROBABLY 90% IN STOCKS.
AND AS YOU GO ALONG, YOU GET, YOU KNOW, TO THE 2015 FUND AND YOUR 65 YEAR OLDS, AND THERE MAY BE 30% IN STOCKS.
THAT PATH OF GOING FROM 90 TO 30 IS WHAT'S CALLED THE GLIDE PATH.
AND YES, WE CAN ABSOLUTELY, UH, DEFINE THAT FOR THE, FOR THE
SO NUMBER FIVE IS, UM, PERFORMANCE RELATIVE TO ASSUMED RISK.
AND, UM, SO RISK AND RISK ADJUSTED RETURN MEASURES SHOULD BE CONSIDERED AND SHOULD BE WITHIN A REASONABLE RANGE RELATIVE TO THE FUND STYLE, SPECIFIC BENCHMARK AND PEER GROUP.
UM, FEES SHOULD BE COMPETITIVE COMPARED TO SIMILAR INVESTMENTS, REPUTATION THAT, UM, FUND AND INVESTMENT PROVIDERS REPUTATION SHOULD BE CONSIDERED.
INVESTMENT OPTION PROVIDERS SHOULD BE OPERATING IN GOOD STANDING WITH ITS REGULATORS.
AND THEN LASTLY, TENURE, THE LONGEVITY AND THE INVESTMENT PROVIDER SHOULD BE REVIEWED TO ENSURE THAT CURRENT MANAGEMENT TEAM HAS BEEN ASSIGNED TO THE PORTFOLIO FOR A PERIOD OF TIME DEEMED TO BE ACCEPTABLE BY THE PARK DISTRICT.
OR COMMITTEE, LET'S SAY COMMITTEE.
UM, AND THEN YOU SAID WE HAD TWO, WE ALREADY HAVE TWO OTHER INVESTMENT POLICIES, LIKE, I WASN'T SURE WHAT THE, DOESN'T THE DISTRICT HAVE LIKE A GREEN POLICY OR LIKE, ISN'T THERE CERTAIN? YEAH, YEAH.
SO WE HAVE AN INVESTMENT POLICY FOR, UM, A FOR OUR INVESTMENT.
AND ON TOP OF THAT WE'VE LAYERED ON ESG INVESTING AS, UM, A CRITERIA THAT WE'RE USING TO REVIEW OUR, SO WE DO QUARTERLY REVIEW OF THE PARK DISTRICT'S INVESTMENTS, AND WE LOOK AT THE ESG SCORE OF THE PARK DISTRICT'S INVESTMENTS.
WHAT DOES ESG STAND FOR? ENVIRONMENTS, SOCIAL AND GOVERNMENT GOVERNANCE.
UM, SO YOU'RE LOOKING AT THE, UM, HOW THOSE INVESTMENTS ARE MANAGED.
ARE THEY ENVIRONMENTALLY FRIENDLY, SOCIALLY FRIENDLY, AND THEN GOVERNANCE, LIKE IS THE GOVERNING BOARD OF THE INVESTMENT, LIKE, ARE THEY DOING, ARE THEY MAKING THE RIGHT CHOICES? RIGHT.
AND I THINK THAT WAS MY QUESTION WAS THAT I KNOW THIS IS PARTICIPANT MONEY, RIGHT? YEAH.
BUT IS THAT SOMETHING THAT THE DISTRICT IS THEN, IS THAT SOMETHING THE DISTRICT WOULD PUT FORTH FOR THESE FUNDS? I DON'T KNOW.
WE COULD TALK ABOUT HAVING A GREEN, LIKE I REMEMBER SOMEONE FROM MISSION SQUARE SAYING THAT, UM, THAT PARTICIPANTS HAD WANTED TO HAVE, UM, GREEN FUNDS IN THE LINEUP.
THEY'VE BEEN PRETTY CONSISTENT IN THAT EMPLOYEES DESIRE, THAT PARTICIPANTS DESIRE THAT.
SO THAT'S SOMETHING WE COULD CONSIDER PUTTING INTO THE LINEUP.
I MEAN, IT'S BEEN OVER AND OVER AGAIN.
SO IS THAT SOMETHING THAT'S PART OF THE CRITERIA OR IS
[01:25:01]
THAT JUST, UM, SOMETHING IN OUR INVESTMENT? IT COULD EXPLICITLY SAY SOMETHING ABOUT THIS IS THAT WE WILL PROVIDE THAT, UM, AS AN INVESTMENT OPTION OR, OR NOT, IT COULD BE SOMETHING THAT WE, THAT WE DON'T HAVE IN OUR IPS, BUT THAT WE DECIDE WE WANT TO ADD.BUT I FEEL LIKE IT SHOULD BE IN THERE, YOU KNOW? 'CAUSE SOMEDAY WE'LL ALL MOVE ON AND, YOU KNOW WHAT I MEAN? YEAH.
LIKE, I FEEL LIKE IT SHOULD, DO YOU HAVE ANY OTHER, UM, EXAMPLES OF PEOPLE PUTTING IN, UM, AN ENVIR ENVIRONMENT LIKE AN E ES G UM, UM, PROVIDER SELECTION DESCRIPTION IN HERE? UM, THAT'S ONE OF OUR, OUR BIGGEST QUESTIONS.
UM, I DON'T, I I DON'T HAVE ANY THAT SPECIFICALLY LIST IT IN THE, IN THE IPS.
UM, WE CERTAINLY CAN AND, AND IF, IF YOU WANT TO, I WOULD PUT IT IN THIS SECTION.
UM, SO I DON'T KNOW, YOU KNOW, WE, WE TALKED ABOUT, YOU KNOW, KEEPING THE, THE IPS FAIRLY BROAD SO YOU'RE NOT HANDCUFFING YOURSELF INTO ANYTHING.
UM, I THINK INCLUDING IT HERE THAT, UM, E ES, UH, ESG INVESTMENTS ARE IMPORTANT TO, TO THE PARK DISTRICT AND, AND ITS PARTICIPANTS.
AND THIS, UH, UH, WOULD BE ANTICIPATE, WE WOULD ANTICIPATE, UH, HOLDING OR PROVIDING ESG UH, OPTIONS FOR PARTICIPANTS.
THE LIST HERE, I WOULDN'T GO MUCH DEEPER THAN THAT AS FAR AS IT, IT'LL, IT'LL BE GEARED TOWARDS THESE SOCIAL ISSUES OR, OR THINGS ALONG THAT LINE.
BECAUSE I THINK THAT THAT OPTION WOULD INCREASE PLAN PARTICIPATION.
I THINK THAT'S SOMETHING THAT'S HIGHLY VALUED BY THE PARTICIPANTS.
BEING THAT WE'RE A PARTICIPANT.
AND I THINK MAYBE THAT'S, UM, 'CAUSE LIKE I SAID, I, YEAH, I DON'T, I'M NOT TRYING TO LIMIT LIMIT PEOPLE'S OPTIONS, INVESTMENT OPTIONS, BUT I DO THINK THAT, UM, IT'S IMPORTANT THAT IF THAT'S THE VALUES OF THE DISTRICT, YOU KNOW YEAH.
AND THEY'RE PROVIDING THE PLAN.
AND YOU KNOW WHAT I MEAN? LIKE, I JUST FEEL LIKE THAT'S SOMETHING WE SHOULD INCORPORATE, BUT IN A WAY THAT'S NOT LIMITING.
SO JUST SOMETHING THAT SORT OF, MAYBE IT'S PART OF OUR LINEUP.
UM, I THINK WE'RE CLOSE TO THE END GUYS.
UH, NUMBER SIX, INVESTMENT OPTION MONITORING.
SO FIRST PARAGRAPH IS SAYING WE'RE GONNA REVIEW THIS IPS ON A REGULAR BASIS, NORMALLY EVERY FIVE YEARS.
YOU GUYS COMFORTABLE WITH THAT TIMELINE? OKAY.
'CAUSE WE'RE JUST DOING THE INVESTMENT REVIEW QUARTERLY.
BUT THE POLICY STATEMENT, THE POLICY EVERY FIVE YEARS.
UM, IN ADDITION TO REGULAR MONITORING OF THE PERFORMANCE OF INVESTMENT OPTION, WE'LL REVIEW THE STRUCTURE OF THE INVESTMENT OPTIONS TO MAKE SURE THEY'RE APPROPRIATE FOR PLAN PARTICIPANTS.
THIS IS LIKE THE NUMBER OF INVESTMENTS THAT WE'RE OFFERING, THE CATEGORIES THAT WE'RE OFFERING, UM, VARIOUS EQUITY AND FIXED INCOME CATEGORIES.
AND SO WE WANNA BENCHMARK OUR INVESTMENT OPTIONS VERSUS THE WHOLE UNIVERSE OF, UM, WHAT'S OUT THERE.
AND I HAD A COUPLE OF QUESTIONS ON HERE.
SO IS THIS SOMEWHERE MAYBE WE WOULD PUT THE RFP UM, TYPE OF LANGUAGE? I DON'T, THIS IS AGAIN, THIS AGAIN, JUST LIKE, OKAY.
NOT THE FIRM THAT'S PROVIDING THE RECORD KEEPING AND TRUSTEE AND ALL THAT STUFF.
AND THEN, UM, IT SAYS IN ADDITION TO THE REGULAR REVIEW OF THE STRUCTURE, SO HOW OFTEN IS THAT HAPPENING? LIKE THE, BEFORE IT SAID, YOU KNOW, FIVE YEARS.
SO LIKE, HOW OFTEN IS THIS HAPPENING? LET'S, YEAH, LET'S SPECIFY THAT.
SO THE REGULAR MO MONITORING, THE REGULAR QUARTERLY MONITORING, WE COULD, WE COULD PUT IN THERE.
AND I THINK, YEAH, I THINK MEADOW'S SAYING LIKE, UM, SO IT'S SAYING WE'LL REVIEW THE STRUCTURE OF THE INVESTMENT OPTIONS.
CAN WE SAY LIKE, NO LESS OFTEN THAN EVERY FIVE YEARS OR SOMETHING? YEAH, THAT'S FINE.
I THINK FIVE YEARS IS A LITTLE HIGH FOR THAT.
THREE YEARS, FOUR YEARS, THREE KID, TWO OR THREE.
SO THAT'LL BE AT LEAST EVERY THREE YEARS.
UM, PARK DISTRICT ACKNOWLEDGES ON THE LAST PARAGRAPH NOW FLUCTUATING RATES OF RETURN.
I ALMOST THINK, YEAH, IT'S JUST SAYING LIKE, KEEP THE LONG TERM PERSPECTIVE.
I ALMOST THINK TWO YEARS WOULD JUST BE EASIER BECAUSE YOU COULD HAVE IT ON THE EVEN OR THE ODD YEARS AND JUST BE LIKE, YOU KNOW, WE COULD TIE IT WITH ELECTIONS OR, SO, I DON'T KNOW, SOMETHING.
I FEEL LIKE EVERY THIRD YEAR IT'S GONNA BE LIKE, WAS THAT NECESSARILY, WAS THAT LAST YEAR? YOU KNOW, I COULD SEE, I JUST THINKING
[01:30:01]
TWO YEARS MIGHT BE EASIER TO KEEP TRACK OF.WE CAN ALWAYS, IN FIVE YEARS, WE CAN ALWAYS CHANGE IT.
WE LOOK AT IT AND WE'RE LIKE, NO CHANGES, OR WE'RE LIKE, WOW, THAT WAS A LOT.
UM, SO PRIOR DISTRICT OR COMMITTEE, SO IT'S GONNA SAY THE COMMITTEE WILL, UH, CROSS OFF PRACTITIONER THERE.
UM, SO IN THE, WHERE IT SAYS ON A SEMI-ANNUAL BASIS, WE'RE GOING TO CHANGE THAT TO BE QUARTERLY.
ON A QUARTERLY BASIS, THE INVESTMENT OPTION WILL BE FORMALLY REVIEWED AND ARE EXPECTED TO MEET OR EXCEED THE FOLLOWING CRITERIA.
SO PERFORMANCE FIRST BULLET, PERFORMANCE ABOVE MEDIAN, UM, COMPARED TO THE PEER GROUP OVER A FIVE YEAR OR SHORTER TIME PERIOD.
SECOND BULLET INVESTMENT EXPENSES LESS THAN THE AVERAGE FOR THEIR RESPECTIVE PEER GROUP RISK MEASURES WITHIN AN ACCEPTABLE RANGE OF THE INVESTMENT OPTIONS.
PEER GROUP, FOURTH BULLET, MORNINGSTAR RATING OF FIVE STARS ARE BETTER.
AND THEN LASTLY, CONSISTENT INVESTMENT STYLE AND STRATEGY.
SO I DON'T KNOW WHAT ACCEPTABLE RANGE IS.
BILL, IS THERE A WAY TO QUANTIFY ACCEPTABLE RANGE IN THE, UH, INVESTMENT OPTIONS? PURE? THIS IS FOR THE, UM, THIRD BULLET, THE RISK MEASURE WITHIN AN ACCEPTABLE RANGE.
IS THERE A WAY TO QUANTIFY THAT? UM, AND THIS IS THE, KEEP IT A LITTLE BIT BROAD SO THAT, SO YOU'RE NOT HANDCUFFING YOURSELF.
UM, IT'S, IT'S KIND OF DIFFICULT, I WOULD SAY, BECAUSE YOU'RE LOOKING AT DIFFERENT CATEGORIES, RIGHT? SO IF WE'RE LOOKING AT RISK MEASURES, UM, NORMALLY WE'RE LOOKING AT, YOU KNOW, STANDARD DEVIATION FOR, FOR OVERALL VOLATILITY.
UM, YOU KNOW, WE'RE GONNA LOOK AT THE SHARP RATIO AS FAR AS RISK ADJUSTED RETURN, THINGS ALONG THAT LINE.
SO IF YOU'RE LOOKING AT THOSE MEASURES FOR A LARGE CAP GROWTH FUND, UM, THEY CAN BE PRETTY DIFFERENT THAN IF YOU'RE LOOKING AT A SMALL CAP VALUE FUND.
COULD YOU SAY COMPARABLE TO THE INVESTMENT OPTIONS PEER GROUP? BECAUSE YOU ARE SORT OF LIKE THE WAY IT'S WRITTEN NOW.
I DO THINK IT'S, YOU'RE NOT SAYING APPLES TO ORANGES, LIKE IT'S WRITTEN LIKE WE ARE GONNA LOOK AT APPLES TO APPLES.
SO YEAH, WE'RE GONNA LOOK AT THE PEER GROUP.
SO WE'RE, WE'RE GONNA MEASURE THE FUND ONLY VERSUS WHITE FUNDS.
HOW ABOUT REPLACING ACCEPTABLE WITH PRUDENT, BUT EVEN THAT IS LIKE, YEAH.
HOW ABOUT LIKE, RISK MEASURES COMPARABLE TO THE INVESTMENT OPTIONS PEER GROUP WITHIN A COMPARABLE OR, UM, UH, MAYBE COMPARABLE IS TOO VAGUE.
ALSO, I KNOW WITH THE, UM, I JUST DON'T, I MEAN, I, I, I FEEL LIKE IF THIS IS MY RESPONSIBILITY, I HAVE NO IDEA WHAT'S ACCEPTABLE.
I MEAN, THAT'S, SO WE WILL NOT BE DOING THIS ON OUR OWN, LIKE, WE'LL, WE'LL HAVE THE ADVICE FROM EMPOWER SAYING LIKE, THIS IS NOT AN ACCEPTABLE RANGE OR IT'S RIGHT.
AND I MEAN, YOU KNOW, I THINK OF THE, THE PARTICIPANTS THAT ARE READING THIS, RIGHT? YEAH.
AND THEY'RE SAYING LIKE, THAT WAS UNACCEPTABLE.
AND I'M LIKE, IT WAS, I MEAN, LIKE, YOU KNOW WHAT I MEAN? HOW, HOW ARE THEY SUPPOSED TO, YOU KNOW, HOW ARE WE SUPPOSED TO, TO KNOW WHAT WE'RE DOING? YOU KNOW, I FEEL LIKE WE'RE USING COMPARABLE IN OTHER, ARE WE IN OTHER PLACES IN THIS IPS MM-HMM.
SO I THINK, DOES THAT, UM, DOES THAT WORK, BILL, IF WE SAY RISK MEASURES COMPARABLE TO YEAH, I THINK THAT'S FINE.
THAT'S, THAT'S GONNA PUT YOU, YOU KNOW, NEAR THE MEDIAN OF THE GROUPS.
ONE, WHY DON'T WE SAY NEAR THE MEDIUM THEN? YEAH, I WAS GONNA SAY, CAN YOU SAY, WELL, I THINK, I THINK IT'S HARD TO, TO QUANTIFY THE EXACT RISK, RISK MEASURE OF THE PEER GROUP.
THERE'S NO RISK MEASURE METER.
I DON'T KNOW, MAYBE THERE IS BILL, BUT I, I DON'T, I'M NOT, I DON'T AWARE OF A RISK MEASURE METER IN.
AND, AND IT KIND OF DEPENDS ON HOW YOU WANNA, HOW YOU WANNA DEFINE RISK.
THERE'S A LOTS OF, THERE'S LOTS OF WAYS TO DEFINE IT.
UM, THE, YOU KNOW, THE FEW THINGS I MENTIONED ARE KIND OF STANDARD TYPES OF, TYPES OF, UM, UH, OF CRITERIA.
SO IT'S, WE WANNA KEEP IT BROAD, BUT I THINK COMPARABLE, I THINK PUTS IT NEAR THE MEDIAN.
SEE, THAT MAKES ME EVEN MORE CONCERNED.
'CAUSE I'M LIKE, IF THERE ISN'T A METER, THEN HOW DO I KNOW? I MEAN, IN OTHER WORDS, YOU KNOW, NORMALLY THERE'S DATA, RIGHT? SO YOU'RE LIKE, YOU KNOW, LIKE YOU SAID, STANDARD DEVIATION OR, OR MEDIAN, OR THERE'S SOME KIND OF, THERE IS NO HEAT SET OF DATA.
SO THERE'S THE SHARP RATIO AND WHAT'S THE OTHER ONE YOU MENTIONED? STANDARD DEVIATION, SHARP RATIO.
UM, YOU KNOW, WE'LL PROBABLY, WE'LL NORMALLY LOOK AT R SQUARED, WHICH IS THE, UM, CORRELATION TO A SPECIFIC INDEX.
UM, THE, THE, I LIKE TO LOOK AT, AND I, I'M SORRY TO GET INTO TOO MUCH DETAIL, SORTINO RATIO, WHICH IS LOOKING AT PERFORMANCE VERSUS DOWNSIDE RISK.
UM, SO THERE'S, YOU KNOW, DIFFERENT THINGS THAT WE WILL, WE WILL KIND OF LOOK AT, BUT WE, WE DON'T, WE DON'T, NORMA I DON'T NORMALLY SEE THAT
[01:35:01]
REALLY SPECIFICALLY SPELLED OUT IN THE IPS.DOES THAT MAKE YOU FEEL BETTER? SURE.
THERE ARE NUMBERS THAT YOU CAN LOOK AT.
SO THEN THE LAST PARAGRAPH IS, UM, SAYING, SO IF OVERALL THE INVESTMENT OPTION IS ACCEPTABLE, NO FURTHER ACTION REQUIRED.
AND IT'S GONNA SAY IS REQUIRED BY THE COMMITTEE.
IF A FUND CONSISTENTLY FAILS TO MEET, THEN UH, COMMITTEE, COMMITTEE MAY PUT THE INVESTMENT ON A WATCH LIST.
IF AN INVESTMENT IS ON A WATCH LIST AND CONTINUES TO THE COMMITTEE MAY RECOMMEND COMMITTEE MAY RECOMMEND TO THE BOARD OF DIRECTORS TO REPLACE THE INVESTMENT, RIGHT? YEP.
SECTION SEVEN, INVESTMENT OPTION TERMINATION.
SO THIS IS NOW TALKING ABOUT WHAT HAPPENS WHEN WE DECIDE TO REMOVE A FUND, UM, OR WE RECOMMEND TO THE BOARD TO, TO REMOVE A FUND.
UM, SO INVESTMENT OPTION MAY BE REMOVED WHEN THE, SO THEN IT WILL SAY PARK DISTRICT, MM-HMM.
BASICALLY ALL OF THESE BULLETS ABOVE LIKE WOULD MM-HMM.
SO ANY RECOMMENDATION WILL BE TREATED ON AN INDIVIDUAL BASIS, UM, NOT SOLELY ON QUANTITATIVE DATA.
LIKE, MORE THINGS TO CONSIDER.
UM, SO IT'S A JUDGMENT THAT TURNS ON THE, LET'S SEE, WE WANNA SAY IT'S A JUDGMENT THAT TURNS ON THE, UH, PARK DISTRICTS OR COMMITTEES.
I MEAN, I GUESS WE COULD JUST LEAVE IT.
UH, WELL, I MEAN, MAYBE, AND WE SAY PARK DISTRICT AND COMMITTEES.
OR, AND OR WE NEED TO BE SPECIFIC.
WE COULD PUT AND OR, AND OR COMMITTEE'S CONFIDENCE IN THE INVESTMENT MANAGER'S ABILITY TO PERFORM PARK DISTRICT OR COMMITTEE MAY CONSIDER OTHER FACTORS SUCH AS TURNOVER OF KEY INVESTMENT PERSONNEL OR MATERIAL CHANGES TO THE INVESTMENT MANAGER'S INVESTMENT GUIDELINES.
MAYBE WE SAY LIKE THE DECISION INSTEAD OF SAYING, DO YOU GUYS FOLLOW, SORRY.
THE DECISION MAY ALSO CONSIDER OTHER FACTORS SUCH AS TURNOVER OF KEY INVESTMENT PERSONNEL.
THE PARK DISTRICT OR THE RECOMMENDATION MAY ALSO CONSIDER, RIGHT? 'CAUSE UP HERE IT SAYS RECOMMENDATION OR RECOMMENDATION.
SO THE PARK DISTRICT COMMITTEE IN DISCRETION MAY PLACE AN INVESTMENT OPTION UNDER REVIEW OR RECOMMEND THE RETURN SHOULD THE PARK DISTRICT COMMITTEE BELIEVE IS IN THE BEST INTEREST OF THE PLANS OR PARTICIPANTS.
SO I'M THINKING IT'S OKAY TO LEAVE IT OR HERE, BUT WHAT DO YOU GUYS THINK THAT NEXT
THE PARK DISTRICT WAS BANKING WITH WELLS FARGO.
AND THERE WAS NOTHING IN OUR, IN OUR POLICY THAT SAID LIKE THAT, UM, WE SHOULD STOP BANKING WITH WELLS FARGO.
BUT THERE WAS LIKE THIS WHOLE, UM, ISSUE WHERE THEY WERE OPENING UP FAKE ACCOUNTS.
AND THE PARK DISTRICT WAS LIKE, WE DO NOT WANNA KEEP THIS RELATIONSHIP WITH WELLS FARGO ANYMORE.
AND A LOT OF GOVERNMENT ENTITIES DID THAT.
SO THIS SENTENCE IS INTENDING TO GIVE US THIS FLEXIBILITY SAYING THAT WE COULD CHANGE AN INVESTMENT.
LIKE IF SOMETHING IS IN THE NEWS THAT'S LIKE, YEAH.
I MEAN, EMPLOYEE DIRECTORS CAN DO IT AT ANY TIME.
THEY DON'T HAVE TO COME TO THE COMMITTEE.
SO THAT'S, I MEAN, OBVIOUSLY WHAT'S INTENDING TO SAY, LIKE THEY CAN ACT INDEPENDENTLY, WE CAN ACT WITHOUT IT'S, EVEN IF THEY'RE PERFORMING GREAT, BUT LIKE SOMETHING BAD COMES OUT ABOUT A CERTAIN INVESTMENT, WE STILL HAVE THE FLEXIBILITY TO MM-HMM.
SO I THINK, SO THAT'S WHAT, THAT'S, YOU CERTAINLY WOULDN'T WANT TO LIMIT THAT IN ANY WAY.
THAT WAS INDICATION OF ANY KIND THAT, THAT WAS NOT A GOOD IDEA.
SO WE'LL KEEP IT THE WAY IT'S WRITTEN.
UM, PARK DISTRICT OR COMMITTEE WILL DECIDE THE APPROPRIATE COURSE OF ACTION IF AN INVESTMENT IS REMOVED AND SUCH COURSE OF ACTION MAY INCLUDE THAT'S THE BOARD OF DIRECTORS, RIGHT? SO PARK DISTRICT BOARD OF DIRECTORS.
AND SO THOSE OPTIONS MAY INCLUDE REMOVAL AND REPLACEMENT WITH AN ALTERNATIVE INVESTMENT, OR WE RETURN IT WITHOUT REPLACEMENT AND WE HAVE MAP ASSETS TO A DIFFERENT INVESTMENT OPTION.
SHOULD AN INVESTMENT BE REMOVED, THE ASSIGNMENT'S CURRENTLY HELD? SO THIS THEN GETS INTO
[01:40:01]
LIKE, UM, WHAT HAPPENS FOR THE PERSON WHO'S GOT THAT INVESTMENT? MM-HMM.UM, SO IT'LL BE AUTOMATICALLY TRANSFERRED TO ANOTHER INVESTMENT OPTION DESIGNATED BY THE PARK DISTRICT BY THE RECORD KEEPER.
IN ADDITION, CURRENT PAYROLL CONTRIBUTION ELECTIONS WILL AUTOMATICALLY TRANSFER TO THE DESIGNATED INVESTMENT THE PARK DISTRICT'S STRIKING COMMITTEE.
SO THE PARK DISTRICT'S DECISION TO REPLACE AN INVESTMENT OPTION WILL FOLLOW THE INVESTMENT POLICY STATEMENTS CRITERIA BASED ON THE FACTORS CONSIDERED BY THE PARK DISTRICT OR COMMITTEE.
SO IT'S BASICALLY SAYING LIKE, MAYBE YOU'LL DECIDE SURE.
I THINK, OR IS I THINK LEAVING IT IS FINE TO RETAIN THE CURRENT INVESTMENT OPTION.
OR EVEN ADD A COMPETING OPTION.
YOU GUYS STILL FOLLOWING? MM-HMM?
UM, THIS IS JUST DOCUMENTING THAT WE CONTINUE TO HAVE THE SELF-DIRECTED BROKERAGE ACCOUNT.
UM, IS IT NOT APPLICABLE TO THE RHS PLAN WITH SELF-DIRECTED? UH, I DON'T, I DON'T BELIEVE IT'S AN OPTION WITHIN THE RHS PLAN.
IS THAT SOMETHING THAT PA MIGHT WANT? I HAVE TO GO BACK.
I HAVE TO GET BACK TO THEM AND FIGURE OUT.
I THINK WE MADE IT THROUGH GUYS.
UM, NEXT UP IS TO LOOK AT THE INVESTMENT, UM, LINEUP, UH, THE PROPOSED LINEUP.
UM, BUT WE ARE RUNNING SHORT ON TIME.
SO MAYBE LET'S TAKE A QUICK LOOK AT THE AGENDA, SEE WHAT WE CAN MOVE OFF.
UM, I THINK WE CAN MOVE ITEM F TO NEXT TIME BUDGET PLANNING AND ADMINISTRATIVE ALLOWANCE ACCOUNT.
UM, THE DEFERRED COMPENSATION SURVEY.
I'M NOT SURE WHO, WHO WAS THAT? OH, WAS THAT ON OUR WORK PLAN? MAYBE? NO.
YEAH, SO WE DRAFT, WE DID A DRAFT OF THAT AT THE LAST MEETING.
AND THEN DID WE DECIDE WE WERE GONNA DO IT IN, IN TANGENT WITH MOVING TO EMPOWER? OR DID WE DECIDE WE WERE GONNA POSTPONE? I THINK WHAT WE TALKED ABOUT WAS DOING IT BEFORE THE TRANSITION.
'CAUSE WE WANTED TO KNOW WHAT PARTICIPANTS WANTED OR WERE LOOKING FOR IN THE PLAN.
AND THEN A SECOND ONE ONCE THE TRANSITION HAPPENED.
SO CONNIE'S GIVEN US THE RED LINE OF WHAT WAS, UM, I THINK THAT'S IN HERE OF WHAT WE, UM, HAD MAPPED OUT TO BE IN THE SURVEY.
SO SHOULD WE, DO WE STILL WANT TO, IT, IT SAYS ADDITION ADDITIONAL DISCUSSION TO OCCLUDED SURVEY.
NOW WE'RE GETTING, YEAH, WE'RE GETTING TOO DEEP.
SO, UM, WHEN'S OUR NEXT MEETING? OR IS THAT JANUARY? IT'S NOT SCHEDULED.
WE NEED TO SCHEDULE, IT'S THE NEXT ON THE AGENDA IS TO SCHEDULE OUR WORK, OUR WORK PLAN.
IT WOULD BE, UH, SOMETIME IN JAN, JANUARY 26TH I THINK.
SO MAYBE WE CAN PUT THIS ON THE JANUARY AGENDA AND THEN IF WE SEND IT OUT RIGHT BEFORE WE WOULD STILL GET THE INFORMATION BEFORE WE DO THE TRANSITION.
'CAUSE WE'RE NOT TRANSITIONING TILL MARCH, SO, MM-HMM.
WE HAVE A LITTLE BIT OF TIME IN JANUARY.
I THINK THE, THE SCHEDULE IS VERY IMPORTANT.
AND THEN, UH, SO DO WE NEED TO DO THIS OR DO WE WANNA PUT THIS THE, SORRY, I WASN'T SURE.
YEAH, I THINK WE DO BECAUSE I THINK WE WANNA HAVE A RECOMMENDATION TO BRING TO THE FINANCE COMMITTEE IN JANUARY.
WE'RE NOT GONNA MEET AGAIN UNTIL OKAY.
UM, NO, WE'RE GONNA MEET AFTER THE JANUARY FINANCE COMMITTEE.
UM, WHEN IS JANUARY FINANCE COMMITTEE? IT IS, I DON'T KNOW IF WE'RE ABLE TO DO A RECOMMENDATION RIGHT NOW, NOW THOUGH.
SO I THINK, AND THEN SHE GAVE US THE LIST OF AVAILABLE DATES.
UM, SO THERE IS ONE ON THE 11TH.
THERE'S, THERE'S, UM, I MEAN, IN OTHER WORDS, THERE'S DATES BEFORE THEN THAT WE COULD AT LEAST
[01:45:01]
SCHEDULE THAT AS PART OF OUR SCHEDULING.UM, BECAUSE I, I DON'T KNOW, THIS IS ALL SORT OF NEW INFORMATION FOR US, UM, RIGHT NOW.
SO IF WE MET, UM, JANUARY 4TH, THAT WOULD GIVE US ENOUGH TIME TO, UM, I OR 11TH.
I KNOW I'M, I KNOW I'M ON VACATION, BUT I DON'T HAVE TO NECESSARILY BE HERE.
BUT JANUARY 11TH THEN WOULD BE RECOMMENDATION.
SO WE COULD TALK ABOUT THURSDAYS OR NOT, BUT EITHER WAY YEAH, WE COULD DO THAT, THAT, THAT WEEK OF JANUARY.
I DON'T KNOW IF YOU GUYS COULD HEAR THAT.
SO WE'RE, WHAT WE'RE TALKING ABOUT DOING IS HAVING THE DISCUSSION ABOUT THE FUND LINEUP MOVE TO JA UH, THE, OUR JANUARY MEETING, WHICH WE ARE TENTATIVELY SAYING WOULD BE JANUARY 11TH.
SO WE WOULD STILL HAVE A DECISION IN TIME TO BRING THIS TO THE JANUARY FINANCE COMMITTEE MEETING.
DOES THAT GIVE YOU ENOUGH TIME FOR THE FINANCE COMMITTEE? I THINK, WAIT, WHAT'S MASK BE? UH, IT IS THE 24TH.
THAT SHOULD BE, I THINK THAT'LL BE, I THINK SO.
SO, UM, SO THAT THEN CONCLUDES THIS DISCUSSION.
I, UM, I TOOK A LOT OF NOTES ON MY COPY, SO I'LL, UM, I'LL GET THAT TO YOU, BILL.
YEAH, I, I HOPE YOU TOOK NOTES 'CAUSE I'M SURE I DIDN'T GET EVERYTHING
WHAT TIME DO WE HAVE A TIME OF DAY FOR OUR MEETINGS? I KNOW IT CHANGED A LITTLE BIT THIS TIME.
UH, I MEAN, I THINK THAT'S SOMETHING WE CAN TALK ABOUT IN SCHEDULING IS WHAT DAY AND TIME.
I HAVE A, AN ANOTHER, I'M ON A COMMITTEE AT KAISER THAT MEETS THE SECOND THURSDAY FROM MM-HMM.
WELL, HOLD, LET'S, LET'S LIKE, MAKE SURE WE'RE DONE WITH THIS AGENDA ITEM AND THEN WE'LL, ALRIGHT.
SO I THINK ARE, ARE WE DONE WITH THIS? ARE WE MOVING ONTO THAT? I THINK SO.
DEB, JUST YELL IF YOU NEED WHATEVER YOU NEED.
SO IF WE JUST WORKED ON THE SCHEDULE, I THINK THE LAST THREE ITEMS WE CAN MOVE.
UM, SO, UH, WE CAN LOOK AT THE WORK PLAN.
I JUST GRABBED MY WORK PLAN FOR 2023.
SO, SORRY I DON'T HAVE IT TO PUT UP ON THE SCREEN, BUT I WAS GONNA SUGGEST, I MEAN, WE COULD PRETTY MUCH KEEP IT THE SAME.
JUST UPDATE THE DATES, RIGHT? UM, THE, I THINK NAG A CONFERENCES A LITTLE EARLIER THIS YEAR.
UM, BUT YOU KNOW, I THINK FOR THE MOST PART WAS THERE ANYTHING ON HERE THAT WE NEEDED TO ADD? IT SOUNDS LIKE WE'VE GOT THE QUARTERLY IPS INVESTMENT REVIEWS EVERY, EVERY, UH MM-HMM.
AND THEN, UM, I'M TRYING TO THINK IF THERE WAS ANYTHING ELSE.
OH, THE ONE THING I DID NEED TO ADD WAS ELECTIONS.
WE DIDN'T HAVE ELECTIONS ON HERE, SO I JUST NEED TO ADD ELECTIONS IN JANUARY.
UM, I MEAN, YOU KNOW, IF IT'S PRETTY MUCH GONNA STAY THE SAME AND JUST WE JUST NEED TO CHANGE SOME DATES.
UM, AND ARE WE GOOD WITH THE EVERY OTHER MONTH AT THIS POINT? THAT SEEMS TO BE WORKING
'CAUSE THAT WAS GETTING A LITTLE DIFFICULT.
SO, UM, OKAY, WELL WHY DON'T I MAKE A DRAFT OF THIS.
AND, BUT, BUT LET'S DECIDE ON OUR JANUARY MEETING.
LET'S FIGURE OUT LIKE WHAT DAYS AND TIMES WORKS FOR PEOPLE.
UM, I'M NOT A FAN OF THURSDAYS, BUT, UM, IT DOESN'T HAVE TO BE THOSE DAYS.
I JUST THOUGHT THAT'S WHAT WE WERE DOING.
I I THINK THAT WAS DE I THINK THAT WAS DEBRA ER'S SCHEDULE, I THINK, UM, IS WHY IT GOT MOVED.
THE, THE MIDDLE OF THE DAY ON THE SECOND THURSDAY OF EVERY MONTH IS ALWAYS A BAD DAY FOR ME.
THAT WOULD BE REALLY HARD TO RECONCILE.
IS THERE A BETTER DAY FOR FOLKS? I'M, I MEAN I'M PRETTY MUCH MONDAY THROUGH THURSDAY FINE PRETTY MUCH ANY OTHER DAY.
AND EVEN A DIFFERENT THURSDAY.
THURSDAY IS A PROBLEM FOR SOME, FOR ME.
WHAT I GAVE YOU WAS ALL THURSDAYS.
LET ME, SO DO YOU WANNA, SO JANUARY IS ALREADY TAKEN CARE OF? WELL, NO, WE, I'M SAYING WE'RE TRYING TO FIGURE OUT WHAT DAY WORKS FIRST.
UM, SO IS THERE, I'M PRETTY MUCH MONDAY THROUGH THURSDAY.
I GENERALLY WORK WEDNESDAY TO SATURDAY.
SO WOULD WEDNESDAY WORK THEN? PROBABLY WEDNESDAYS ARE GENERALLY GOOD FOR ME.
I THINK THE TRICK IS GETTING A LOT OF TIMES IS GETTING THE CONFERENCE ROOM, UM, BECAUSE EVERYBODY WANTS TO HAVE MEETINGS ON WEDNESDAYS.
'CAUSE THAT'S THE DAY EVERYBODY'S EATING, RIGHT.
[01:50:01]
SO YEAH, IF LIKE, LOOK AT THIS THING, IT'S LIKE ALREADY COLORED UP ON THE WEDNESDAYS FOR THE MOST PART.THURSDAYS DO LOOK NICE AND CLEAR, BUT WERE YOU LOOKING AT THAT FIRST WEEK IN OR THE SECOND WEEK IN JANUARY? PROBABLY AT LEAST THE SECOND WEEK OR BEYOND.
THE SECOND WEEK, SORRY, THE WEEK IN JANUARY.
EVERY DAY THE BOARD ROOM IS AVAILABLE.
THE 10TH IT SAYS IT'S LEGISLATIVE COMMITTEE, BUT I DON'T KNOW WHAT TIME IT DOES ON THIS THING.
IT DOES ON THE BOARD MASTER CALENDAR OR, OR COULD WE DO THAT 11? SO THE FIRST ONE AND THEN WORK AROUND PETE'S SCHEDULE AND THEN WE CAN WORK AFTER THAT TO CHANGE IT FROM THERE? UM, YEAH, WE COULD, I'M JUST THINKING WHEN IT SAYS LIKE LEGISLATIVE, IS IT ALL DAY OR YOU KNOW? YEAH.
I MEAN IS IT LATER IN THE DAY? IS IT IN THE MORNING? I THINK LEDGE COMMITTEES IN THE AFTERNOON.
IS THAT RIGHT? DOES ANYONE KNOW? I THINK THEY'RE CHANGING THEM ALL TO START 10 30.
AND THEY HAVEN'T BOOKED IT YET.
I'M GLAD YOU GUYS BOOKED AT THAT YET.
THEY HAVEN'T BOOKED IT YET, SO, SO WHAT ABOUT WEDNESDAY AFTERNOON THEN? YEAH, THAT'S WHAT I'M WONDERING.
IF LIKE WEDNESDAY AFTERNOON SURE WOULD WORK.
UM, SO IF THEY'RE LIKE 10 30, BUT I GUESS WEDNESDAYS ARE, ARE PRETTY BOOKED ALREADY, BUT WE COULD CHECK.
WELL WE COULD ALWAYS DO A THURSDAY OR UH, ON, UM, ON THE 11TH.
THAT, THAT IS STILL THE BAD DAY, THE AFTERNOON OF THURSDAY THE 11TH WORK? OR IS IT JUST THE WHOLE DAY? UM, ANYTIME AFTER TWO WOULD BE FINE.
THE BEGINNING AT TWO OR LATER TWO.
WHY DON'T WE DO THAT AND THEN, UM, SAVE TWO HOURS.
AND I THINK WE DID OR NO? YEAH.
SO THAT'S ACTUALLY A GOOD POINT THOUGH.
WE SHOULD PROBABLY DO THEM A LITTLE BIT EARLIER IN THE MONTH AT LEAST IF WE DO AND THEN WE BRING TO LINE THEM, BRING STUFF, FINANCE LINE FOR FINANCE.
'CAUSE THAT'S ALWAYS AN ISSUE.
SO LOOKING AT HOW WE HAD IT BEFORE, IT WAS JUST, IT WAS LITERALLY, WE WERE MISSING IT BY A DAY EVERY TIME.
SO, UM, SO YEAH, THAT'S PROBABLY A GOOD IDEA.
OKAY, SO WHY DON'T I JUST DO THAT.
I'LL JUST GO THROUGH AND PUT THE THURSDAYS ON HERE FOR NOW AND THEN WE CAN ALWAYS JUST REVISIT IT OKAY.
UM, BUT I'LL JUST PUT THE SOUNDS GOOD.
THURSDAYS IN THE AFTERNOON IS OKAY, AS LONG AS IT'S AFTER TWO.
I KNOW THAT IS ROUGH, HUH? IT'S LIKE, IT IS KIND OF MIDDLE OF THE DAY FOR A RETIREE
UM, WELL, I MAY HAVE TO DO SOME BY ZOOM, BUT I COULD, WE STARTED AFTER TWO.
I THINK YOU HAVE TO BE, I THINK YOU HAVE TO BE IN PERSON NOW.
UM, UM, AND THE 21ST WOULD BE, WHAT ABOUT FIRST THURSDAY? WOULD, WOULD THAT WORK? WHAT'D YOU SAY FIRST THURSDAYS? UM, WE COULD, YEAH.
THAT WOULD TAKE AWAY, I I THINK I'M JUST ON VACATION THAT ONE TIME.
UH, IT'S JUST THAT JANUARY 4TH.
I'M, I'M, SO IF WE CAN DO THE SECOND ONE, IS THAT OKAY ON THE 11TH IF WE THAT AND THEN AFTER THAT, JUST DOING IT THAT ONE TIME.
I, I'LL DO MY BEST TO, SO, UH, SORRY, IT'S THE FIRST THURSDAY NOW WE'RE DOING FIRST THURSDAY, IS THAT CORRECT? FIRST THURSDAY AFTER STARTING MARCH, RIGHT? YES.
AND DO WE WANNA DO A LITTLE BIT EARLIER, SINCE YOU CAN DO THAT NOW, DO YOU WANNA DO LIKE A 10 30 TO, TO 1230 OR SOMETHING? UM, I, I CAN GET HERE.
THAT WAS, I'M JUST THINKING LATER IN THE DAY, YOU KNOW, PEOPLE TAKE OFF TO, DO YOU KNOW WHAT I MEAN? I COULD SEE THAT BEING A LITTLE MORE DIFFICULT.
YEAH, I THINK I'M, I'M UP FOR WHATEVER.
I'LL JUST PICK SOMETHING COOL EARLIER.
LOOKS LIKE IN JULY THE FIRST IS NOT THE FIRST.
OH YEAH, THE FIRST IS GONNA BE AVAILABLE.
SO THEN WE, SO THAT ONE WE CAN JUST ADJUST.
WHAT'S WRONG WITH JULY? UH, JULY 4TH OR 4TH OF JULY? I WAS JUST LIKE, IT LOOKS LIKE IT'S COLORED.
IT'S THE 4TH OF JULY I'LL BE WORKING.
UM, SORRY, WHAT WERE YOU SAYING FOR JULY? UH, SHE WAS JUST SAYING THAT THE FIRST THURSDAY MIGHT NOT BE AVAILABLE 'CAUSE IT'S 4TH OF JULY, BUT, UM, BUT THAT'S OKAY.
WE CAN JUST, WE'LL JUST MODIFY IT, YOU KNOW, DO MAYBE DO IT THE SECOND THURSDAY ON THAT, THAT TIME.
AND UM, PETE, DON'T SEND THIS OUT IF THEY'RE NOT GOOD FOR YOU, THEN WE'LL WORK AROUND YOUR SCHEDULE FOR THAT CADENCE.
SECOND THURSDAYS ARE MY ONLY SERIOUSLY BAD TIME.
SO JANUARY 11TH FROM TWO TO FOUR AND THEN IN MARCH WE'LL DO THE FIRST THURSDAY, 10 TO 12,
[01:55:01]
SOMETHING LIKE THAT.IS THERE ANYTHING ELSE ON THE AGENDA? UM, PARTICIPATION DATA, LET'S SEE, I DO HAVE A GRIEVANCE HEARING
SO WE CAN, BUT AT LEAST WE HAVE IT.
UM, AND THEN WE PUSHED THE OTHER TWO.
AND THEN I DID JUST WANNA MAKE SURE THERE WAS ROOM FOR PUBLIC COMMENT 'CAUSE WE ONLY HAD PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA, SO I WANTED TO MAKE SURE WE HAD PUBLIC COMMENT FOR ITEMS ON THE AGENDA.
IS THERE ANY PUBLIC COMMENTS? NO PUBLIC COMMENT.
ANYTHING ELSE ANYBODY WANT TO ADD? NO.