HomeMy WebLinkAbout2015/07/21-Minutes-Joint Meeting CC w/ Retirement Fund bd CITY OF FORT WORTH,TEXAS
JOINT CITY COUNCIL—FORT WORTH EMPLOYEES' RETIREMENT FUND
BOARD MEETING
JULY 21, 2015
Present:
Mayor Betsy Price
Mayor Pro tem Salvador Espino, District 2
Council Member W.B. "Zim" Zimmerman, District 3
Council Member Cary Moon, District 4
Council Member Gyna Bivens, District 5
Council Member Jungus Jordan, District 6
Council Member Dennis Shingleton, District 7
Council Member Kelly Allen Gray, District 8
Council Member Ann Zadeh, District 9
Fort Worth Employees' Retirement Fund Board Members Present:
Todd Cox, Place 2
Benita Harper, Place 3
Betty Tanner, , Place 4
Billy Samuel, Chair, Place 6
Marsha Anderson, Place 7
Jesus Payan, Place 8
Jarod Cox, Place 9
Jason Brown, Place 10
Billy Crawford, Jr., Place 11
Aaron Bovos, Place 13
Absent:
Matthew Anderson, Place 1
Lance Usrey, Place 5
Staff Present:
David Cooke, City Manager
Sarah Fullenwider, City Attorney
Mary J. Kayser, City Secretary
Joelle Mevi, Fund Executive Director
I. Call to Order—Mayor Betsy Price and Chair Billy Samuel
With a quorum present, Mayor Price and Chair Samuel called the joint meeting of the Fort
Worth City Council and the Fort Worth Employees' Retirement Fund (ERF) Board to order at
10:07 a.m., on Tuesday, July 21, 2015, in the Pre-Council Chamber, 1000 Throckmorton Street,
Fort Worth, Texas 76102.
CITY OF FORT WORTH, TEXAS
JOINT CITY COUNCIL —FORT WORTH EMPLOYEES' RETIREMENT FUND
JULY 21, 2015
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II. Welcome and Introductions—Mayor Betsy Price and Chair Billy Samuel
Mayor Price and Chair Samuel welcomed the members and audience to the meeting. Both boards
were introduced.
III. Report on January 1, 2015 Fund Valuation — Deborah Brigham, Segal Actuarial
Services
Ms. Deborah Brigham, Segal Actuarial Services, reviewed the summary of the December 31,
2014, valuation. She also reviewed all the changes made to the plan over the last five years. She
provided a summary of the valuation as of December 31, 2013, and as of December 31, 2014,
without changes, with Plan provision changes only; with Plan changes and the COLA election
and finally with Plan and COLA Changes and the Ad Hoc COLA estimate. The current
amortization period is 55.73 years and the funded ratio is 62.23%. She noted that the conditions
have not been met for an ad-hoc COLA for January 1, 2015 and no ad-hoc COLAs are
anticipated until 2044 unless the plan has more favorable experience than assumed.
IV. Analysis of Actuarial Impact of Employees' Retirement Fund (ERF) Changes from
2009 to 2015—Doug Anderson, Gallagher Benefit Services
Mr. Doug Anderson, Gallagher Benefit Services, Inc. presented a report educating those in
attendance about the changes to the plan since 2009. The purpose of the study was to analyze
the effectiveness of the plan changes by considering what the metrics would have been if the
plan changes had not been adopted. Highlights included:
• The Unfunded Actuarial Accrued Liability increased from $396 million in 2009 to
$1,271 million in 2015; however, the more important metric is the amortization period
which fell from infinite to 55.6 years after accounting for all benefit changes, 2008
investment losses, the reduction in the assumed rate of return and the COLA elections.
• The Funded Ratio decreased from 72.8% in 2009 to 62.2% in 2015
• The Recommended Contribution increased from $103 million in 2009 to $124 million in
2015
• The Contribution Margin increased from being a 3.36% deficit in 2009 to a 3.90% deficit
in 2015
• If the plan changes had not been adopted, the Fund's amortization period would have
been infinite, with and without the COLA election, due to Fund performance and
assumption modifications.
V. Review the Performance of the Fund —Joelle Mevi, Fund Executive Director/CIO
Ms. Joelle Mevi, Fund Executive Director, presented the Fund Performance Update. The
Retirement Fund Investment portfolio ended the calendar year 2014 with a total fund return of
4.89% below the Fund's benchmark target of 5.57%. As of May 2015 the total fund market value
was $2.139 billion and a calendar year to date return of 4.34% and a 12 month return of 4.50%.
CITY OF FORT WORTH, TEXAS
JOINT CITY COUNCIL—FORT WORTH EMPLOYEES' RETIREMENT FUND
JULY 21, 2015
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VI. ERF Strategic Accomplishments, Initiatives and Dashboard — Joelle Mevi, Fund
Executive Director/CIO
Ms. Joelle Mevi, Fund Executive Director, outlined the accomplishments and strategic initiatives
for 2014—2015.
Accomplishments:
• An Asset/Liability Study is underway; estimated completion September 2015.
• Recruitment and hiring of a new General Counsel was completed in May.
• A Local & Regional Real Estate investment program was created for institutional quality
co-investment opportunities in the DFW area.
• The RFP for a new Benefit Administration System was completed in May, contract
negotiations are underway and implementation is expected to begin in August; the 3-
phase implementation is expected to take 28 months.
• A new FWERF website is underway; estimated go-live in late August 2015.
• A Newsletter survey was conducted and changes to name, format, and content were
implemented to incorporate membership feedback.
• The Fund's 2013 CAFR received the GFOA Certificate of Achievement in Financial
Reporting.
Strategic Initiatives:
• An Asset Allocation study will be conducted in late 2015.
• An actuarial experience study (3-year rotation) is scheduled for Spring 2016.
• Several risk monitoring and reporting systems/procedures are being designed and tested.
• Coordinate and refine investment-related operations:
• asset management fees
• investment benchmarks
• consultant communications
• A customer satisfaction survey will be conducted during August and September.
• A comprehensive review of the Board's internal governance documents will be
undertaken over the coming year.
VII. Next Meeting—To be determined
The next meeting date will be determined.
VIII. Request for Future Agenda Items
There were no requests for future agenda items.
CITY OF FORT WORTH, TEXAS
JOINT CITY COUNCIL—FORT WORTH EMPLOYEES' RETIREMENT FUND
JULY 21,2015
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IX. Adjourn
There being no further business, Mayor Price and Chair Samuel adjourned the joint meeting at
11:44 a.m.
These minutes were approved by the Fort Worth City Council on the 4 1 day of August, 2015.
Attest: Appro
Mary J. I sel B , Price
City Secretary Mayor