2016-10-25MINUTES
CIVILIAN RETIREMENT COMMITTEE
October 25, 2016
A meeting of the Civilian Retirement Committee was held on October 25, 2016 at 1:30 p.m. in the
Blair Council Chamber. The meeting was called to order by City Administrator Storm.
Those present were Terry Vandry, Deanna Jensen, Bob Frahm, Gayle Roberts, Pat Long, Brenda
Wheeler, Assistant City Administrator Green, City Administrator Storm, Rick Dhabalt and Sarah
Frederickson from DC Retirement Strategies (DCRS), and Neil Lisec from BPI -Third Party
Administrator. Absent: None.
Motion by Vandry, second by Roberts to approve the minutes of the November 12, 2015 meeting
as presented. All members present voted Aye. Motion carried.
Rick Dhabalt reviewed the following: 1) Plan design: Reviewed the demographics stating there
are 37 active participants with $4.2 million in assets, which has grown from $3.6 million in 2013.
The fees have jumped to $620.47 for 2016. These fees were charged to participants for expenses
and early withdrawal charges and will change year to year depending on how many participants
take withdrawals or have QDRO's processed, which is more expensive than a simple withdrawal;
2) Investments: 27% of the plan assets are in the Target Date funds. More assets are sitting in
Small/Mid Cap US Equity than Large Cap US Equity, which is unusual but not unheard of. 58%
of assets held by participants over age 65 is in Small/Mid, so this may need to be discussed during
an education meeting. LargeCap Growth II moved from less favorable in 2015 to neutral in 2016.
MidCap Value III just moved to less favorable and will continued to be monitored. MidCap
Growth III remains less favorable and has been on probation since 2013. 3) RPAG scoring system
and how the plan's investment line-up faired on their scale. MidCap Growth III scored a 5/10. A
Fiduciary Investment Review was presented to help the Committee determine if Principal funds
are being monitored and are performing well; 4) Education: Committee would like a group
presentation in January or February 2017 as opposed to one on one meetings. Employees can
schedule personal appointments with DORS. Topics for discussion might include investment
options and risk tolerances. There was no interest in a "Life Insurance Lunch and Learn"; 5)
Expenses: Fees have not changed since last year's review.
Motion by Vandry, second by Long to remove the MidCap Growth III fund and map assets to the
Principal MidCap fund that is already available to be effective either January 1 or February 1,
2017. All members present voted Aye. Motion carried. Note: Notice will need to be given to all
participants at least thirty days in advance of the change.
Rick also reviewed the 457 Plan revisiting the option to add a Roth to the portfolio and reviewed
the pros/cons again and the committee decided not to add Roth at this time. There are 34 active
participants in the plan and 54% of assets in Target Date (most likely because the plan is newer).
Motion by Long, second by Jensen to remove the MidCap Growth III fund and map assets to the
Principal MidCap fund that is already available to be effective either January 1 or February 1,
2017. All members present voted Aye. Motion carried. Note: Notice will need to be given to all
participants at least thirty days in advance of the change.
Brenda stated that Principal has requested she enter participant emails online, but she doesn't feel
comfortable doing so. The committee decided that the participant can give their email via the
online portal if they feel so inclined.
Next Meeting: October/November 2017.
Motion by Frahm, second by Vandry to adjourn the meeting at 2:33 p.m. All members present
voting Aye. Motion carried.