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2018-05-02 MINUTES CIVILIAN RETIREMENT COMMITTEE May 2, 2018 A meeting of the Civilian Retirement Committee was held on May 2, 2018 at 11:00 a.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, and Rick Dhabalt and Chris May from DC Retirement Strategies (DCRS). Absent: None. Motion by Frahm, second by Long to approve the minutes of the October 25, 2016 meeting as presented. All members present voted Aye. Motion carried. Rick Dhabalt stated the purpose of the meeting was for a Fiduciary Investment Review for the Civilian and 457 Plans. He noted that both plans contribution requirements, match, vesting, eligibility all remained the same. He then reviewed the average account balances, total assets, participant deferral, online activity and cash flows for each plan. Dhabalt stated the City of Blair satisfies their fiduciary duty of offering a prudent and diverse lineup of investment options. He reviewed the MidCap Value III fund using scoring from RPAG and Principal and returns and percentile rankings for both funds were reviewed in detail as well. Dhabalt outlined the fund lineup stating it is currently on the R-6 share class and they recommend switching from the R-6 share class to a Z-Share class for more transparent expenses. This will allow full disclosure to participants regarding the costs associated with their investments on both plans. DCRS thoroughly explained how the current share class buries funds into the investment expenses. Discussion was held regarding moving the Principal CIT Target Date funds to Index Funds in both plans. These funds perform almost identical but the costs of managing the funds is lower. DCRS will also be approaching Principal to discuss a reduction in fees or fee concession for on both plans when they make the switch to Z-Shares. The total plan cost for the Civilian Plan is currently 0.93% and for the 457 Plan is 1.37%. Discussion was held regarding participant internet usage, record keeping costs and the possibility of turning off the capability of changing beneficiaries online for the 457 Plan. DCRS will check into this issue. Motion by Long, second by Frahm to move CIT Target Date funds to Index Funds on the Civilian Plan. All members present voted Aye. Motion carried. Motion by Frahm, second by Long to switch from R-6 share to a Z-Share class on the Civilian Plan. All members present voted Aye. Motion carried. Motion by Vandry, second by Long to move CIT Target Date funds to Index Funds on the 457 Plan. All members present voted Aye. Motion carried. Motion by Vandry, second by Frahm to switch from R-6 share to a Z-Share class on the 457 Plan. All members present voted Aye. Motion carried. DCRS stated the will re-examine funds after the switch to Z-Shares. The Committee would also like to meet again in late June/early July to review the changes and allow times for employees to meet 1 on 1 with DCRS. Once action on all items voted for change is completed, they will reach out to schedule a review and 1 on 1 education meetings. Motion by Long, second by Frahm to adjourn the meeting at 12:12 p.m. All members present voting Aye. Motion carried.