So, please, any questions, please give me a call. And I can thank you all for your support. Thank you. Anyone else online like to go to public?
Right public comment for online is now going, we'll go to in house, do we have anyone in?
Here, anyone else wants to give a public comment?
It's everyone here just to observe.
You ever heard that?
Okay, thank you. And next up is our system executive
directors report.
Good morning, Madam Chair. No formal report today, however, there is a request from the library department. The president of the toy Library Commission is requesting a list of library retirees that retire between the dates of 112 1022 presents, they're looking for the names to dig up higher and years of service. My understanding is they would like to sit to read gratulations information to the retirees and so on your approval in order to provide them with that information.
Madam Chair, we've had a lot of discussions over the years about when we release names, addresses, information. And in terms of the public records, right, there's no distinction between the general public making a request in order to sponsor many instances. So it creates that difficult situation where if you provide one, you generally have to provide all and we've considered budget information confidential. And so in the circumstances, and you may know, we do the same even for trustees when they run for office, right, and they want to do mail, we indicate that we won't provide that information, but we'll do the mailing through mailing service provider at a cost to them. And while as much as we understand their request, and it sounds appropriate, just hard to distinguish that from other requests. And so I would suggest that we first talked to them about, you know, if they want to put something together that they want to be unveiling that we would then maybe perhaps have we have a postal service provider or something that would do the mail and that we would do the mailing and here's what the cost would be. I just caution about release of records and making a distinction from one entity to another to another.
So would you like to go back to
the second clarify if you're not asking for a name names, dates of service. User Services, the date the person retired, they're not asking for the address. Couldn't
get that under FOIA. In their in their motion?
Misunderstood they don't have an address.
Yes, I can question for Gil's about this local library but suburban was okay. So
much has been made probably since Florida. Any discussion? All those in favor? Those opposed at the same?
Time, so question through the chair to Gail. So you brought up the Detroit Public Libraries we all know. They are paid on the city's payroll system. They are part of our pension plan. But they have their own HR. So the question to you is when the retirement systems get the copies of the city's payroll, do you screw So to make sure that everyone that's being paid is making the required employee contribution to the hybrid plan? In other words, is it possible? Or do you audit to make sure the library doesn't put somebody in a status that's not contributing the pension plan? With without knowing what members, first of all advisor, because as we all know, our combined planning document is mandatory for the person to participate. So my question is on that payroll, I think you'll find that some people that work for the library are coded as not in the pension plan. And payroll reports. Nice. So they brought this to my attention. It's not our HR. So we can't say to our HR people, you check that to make sure that everyone's in the pension plan, is it possible they have someone on their payroll coded and category that's not contributing, that shouldn't be, then might have an argument later that they were in the country, but there's no contribution. So
unfortunately, so we check anybody on the payroll, we check to see if they affect in a pensionable position, and that they are making the mandatory projection. Now, there are some positions at library that were, we can't speak to that because like you say, they had their own HR. And if they have negotiated their own contracts, so they have some seasonal people who are not entitled, who are not required to provide the mandatory deductions. So we go with what they say, in terms of that, because that's the that's the only narrative that we have. But we do check to make sure that those are we are aware of what our individual positions are.
Understanding, so you're saying in part of their labor agreements, a seasonal position may not be required to join the pension plan, or a part time
employee or a part time employees to them up, like, like, librarians work like 20 hours a week. And so they will never get the required number of hours to be eligible for the maturity session so that we don't take the deductions from them.
So now I'm going through through the chair, you know, Michael, Michael, the question is, does art complaintant combined plan document, make that really clear, who were required to take a bunch of contributions from even for the specific targeting use of the library? In the,
as you're aware, the plan of adjustments, right to create a combined plan that right, combined claim document was drafted, for the most part, to collectively put everyone in the same benefit structure? Right. So we didn't have you know, prior to the bankruptcy, we had the retirement ordinance, but we had a lot of collective bargaining agreements and provided very, very different levels of benefits and different criteria. When the plan and adjustment was done, we ended up with now than the combined plan document, the hybrid plan, you know, was pretty much uniform straight across the board for everyone. And we don't do us to the extent that a bargaining unit now negotiate something different now that we're out of pretend your fingers security, right, relating to bargain, those nuances wouldn't be in my plan backwards. But the combined plan document as it exists, fully sets forth the membership criteria for everyone, right, it's based upon hours in position and all of that. And but it doesn't make distinctions between library in general or decent DWSD, or any of the bargaining units. It just says, here's the criteria. If you meet this criteria, you're a member.
Okay. So perfectly. That's exactly the point I wanted. So are you comfortable that when Gail says there are people in the library that are seasonal or in a librarian pool, that that does match up with us not being required that are that's not adverse to our combined plan document without seeing
a specific semi individual? I'm comfortable that the plan document makes that distinction. Right, part time employees seasonal employees are not included in the membership.
Okay, perfect. So, so through the chair, so to the chair now. So thank you for that. So again, at the city payroll reports to me, they had a concern that they see certain people being classified as not a participant in the plan. And because it's not our HR, my person said, How are we sure that that's proper? And I said, Well, I believe in Alaska at the next Pension Board meeting, that retirement systems audits, the payrolls that come over to make sure that they're collecting from those who are supposed to so I know I'm gonna my comfort and payroll supervisor that she has some concerns.
I was gonna say, you know, to the extent, though, that they classify somebody as seasonal, and they end up not being seasonal, right? No one can tell that. But time would show them obviously over time, or they classify somebody as part time. And lo and behold, they've worked for four years and, you know, 35 hours a week. That's that part time.
Yeah. And yeah. Now to add on that point, so through through the chair, that is my payroll persons concern is that the person if not properly contributing, may have an argument later that they've heard a pension benefit, it's not their fault that the money wasn't taken out of their check, and had a concern that maybe there is a pension benefit that isn't properly being paid for. That's that's the concern, right.
So one additional point that we have people that are all over the city that are in non pensionable conditions, such as your TAs employees, such as police assistants, such as election political systems elections, you're a student in terms. So you have a variety of positions that are like that history of nonfiction, a role, or a seasonal position where they have to earn a certain number of hours, as negotiated in the collective bargaining agreement to be eligible for a pension. And they're therefore when they get that number, the deductions start. So we kind of manage that. And I kind of know what those titles are, generally speaking. Now, if your staff member has a concern about specific people in library, I'd be happy to take a list of whatever they're looking at, and try to work with them to just their comfort level.
So that's a good point, I can say that. Without explanation, if you see a concern, please raise it. And we can reply to that. Yes, yeah. And again, I was aware that on the city side, there are people that are in none pension positions, but there is our HR, which is, you know, part of us and we know and are comfortable with their procedures, it was just that in this case, we have a gap that the library's HR is separate from ours, and are they doing the right thing. So again, through the chair and giving me the comfort I was looking for.
And Tiffany Simon is wonderful to work with, we work through very frequent, and she's their HR person. So she I'm sure you're willing to meet with Pam to go over any concerns.
Thank you very much. Anything else? That's it, thank you, let's move on to the executive directors report. Just
one thing, in the next week or two, we're going to be updating the website, just cosmetic changes, you know, the flow of it to make it look better and make it a little bit easier for retirees and active people. But once we do that send out in the military body to be able to look at anything.
This is what
I receive the data. So I'm sorry, no, no city.org website, our website, retirees. But that's all once that goes up and live. I'll send out the I'll let everybody know, say go look at it, they care whether or not we're going to put out
so through the chair today. Can you take us through what what is on the Gaber running list at this point in terms of things?
I'd have to bring it up but I know the pretty much wrapped up I know we're gonna add something, John that we talked about yesterday, you know? But Jamal is on vacation right now. Let me reach out to Judy and have her send me the latest list. Yeah, it's off top my head. I think they're wrapped up pretty much with everything. Right now, except the downside thing that we were doing for PNF nicey.
Yeah. And that's, and that's also there. So shares that make sure the board's comfortable with what we're asking the actuary to calculate. What we'd like them to do for general as well as we have their funding valuation to know what the city's contribution is next year. We know that through May 15. We're already above our investment rate of return. So the contribution they've projected should be pretty, pretty good. But in future years, that city contribution could go up if the plan doesn't earn six and three quarters. We've obviously got the retiree protection funds set aside to buffer our contribution, but what we'd like paper rotor to do Is show us a sensitivity analysis of going forward? What if we don't earn six points out of five? What if we are in 6.5? What if we are in 6.25? What if we are in 6.0? What if we are in 5.5? What happens to that contribution, and the reason the city needs it is for our retire Protection Fund. Now, we have that plotted out, it's in the budget that city council just approved, those drawers are based on earnings section three quarters. If we don't in one year, we all know our funding policy has smoothing. So it doesn't change the city's contribution instantly. But over three years, those losses and gains get averaged down. And so the question is, we feel like we're good with the maturities of our retire protection fund to support payments into the general retirement system. But we need to model out the sensitivity of what if we don't hit our rate of return. And we need to draw sooner from that entire production environment, we have implications on how we the best. So we've asked caper rotor to do that. Definitely prepared another, I think from this. And it's also what's in it for the board is the CFO is considering making the city's contributions quarterly as opposed to at the end of the year. So this year, we're all set to make the payment in June at the money coming from the Grand Bargain. We've got city money, am and and we've got the money coming in from DWSD and library. So the contribution for this year will happen early June. But the board has asked the city, rather than wait until the last month of the year, it would help with the cash flow here if they can get if we could get the money quarterly. And the CFOs position is well, I know you're good now with the retire perfection, the fun to do quarterly. But what if we didn't get the investment target? Are you still okay? And for us to answer that question to him, I need the Gaver motor sensitivity. So that's that request.
When do you expect to have that?
Well, so Well, you know, we're, now we're talking about next fiscal year. But right now, we're just buttoning up fiscal 24. So that kind of those contributions will come into June. But I don't know how long it will take with a roller. But if you think of the first quarter of next year, if we want to make a contribution by the end of September, clearly, we got to be talking to the CFO in July, August about what we want to do. And so that's one a broader thing. And then the second part is, we've asked, I believe, as Gabriel Rota, we've had this request from retirees that are subject to the annuity, six savings fund recoupment, that they would like the option again to pay off their balance. And so I believe we need a barometer to show us what with the balance do be from each of these people? You know, we know because we got a spreadsheet at the time of the bankruptcy. Everyone that was subjected to it, I think David has said we know each person at what point that payment would be fully made based on your life expectancy. And we know the amount they started with. So we need give her order to calculate for each of those people. How much have they paid down? If we if we were to go back to the bankruptcy court and say, bankruptcy court? Can we allow the people that want to to pay off their balance? The question will be well, what is that balance? And we need to give them rota to show us that we know in total on our books, it's $95 million, I think so so it's a lot of money. And so but to offer a prepayment option, it's got to start with how much would be left for each person. And and the item that's not available, and I've checked down since last board meeting is that spreadsheet came from Milliman, who was hired by the emergency manager. And there was a question of their work papers that support it the spreadsheet that we got, and unfortunately, those are no longer available. Those those records of all all hit their document retention policy, and no longer exists. So all we have is what we've got here, which is the spreadsheet of what everybody owed and what their payment was going to be for the rest of their life.
Do they have at least any reference to what mortality table they use or no
all work papers courts, local amateur our lawyer to ask them all work papers in accordance with the document retention policy, according to them to storage, okay. So that spreadsheet is all we're going to Yeah. So anyway, that's My only other Gabler wrote her questions to prepare us if we're going to reopen this window, and we talked about it was City Council time, the budget. We still from the city side have to get approval to offer it and then go to the bankruptcy court saying can we offer it but it starts with having the right data to know what we're asking for.
agenda we have we had we got to retire, we got the retiree information we sent we send it back to them to add on the accurate so we're halfway there. Okay, great. Okay, they didn't have an update website for you. Ah, why gather? A temporary one's gonna be present one's gonna be okay.
I just want the record to reflect that. Trustee revenue. Anthony came in. All right. I'm going to move to uhci. They're ready
to be done. I
don't know how long
how long do you need to get glue?
Glue in Kevin Leonard. Madam Chair. Maybe we can jump to the NPC report.
Let's start with you guys.
See ya property update, if you don't mind because they're at 1045 and anything, God bless
you my presentation should be no more than 45 minutes.
Okay, once I get Okay, so I'll get
CIO report. Yeah. So we thank you, Madam Chair. We have several 100 From NBC and blue block from standing online today from any PC are talking about performance pay and our property in Hawaii, respectively. We'll start with Lou, he's traveling some time in strength. So he's going to talk first about the properties and the questions that came up in our last meeting. There is a letter in your packet from Lou that he may reference
and I'll turn it over to Lou. And Madam Chair, if I may, and Lou, just from a pure negotiating standpoint on our sale of this property. I know you all have a piece of correspondence I would ask that if we're going to start discussing pricing and options and things of that nature that we might want to go into closed session but I think you can probably have an informed discussion without getting into the dollar amount. If you concur with what his recommendation is in the letter we will consider we'll keep that confidential and we don't have to go into closed session because the other things are all fine. Thank you Lou are you there? You might be muted.
three
hours free you are muted I don't know if that is so
technical difficult. So they say if you can call back in we had YouTube when you first saw them there's some background noise if you could dial back in can we
get just hung up so?
My family winning her work
All right, is that Lou?
Lou Vogt.
All right, Lou Vogt.
Lou Vogt here.
All right, you have the floor. Good morning. Good morning, and I appreciate being able to jump in while I'm traveling here in Georgia. You know We wanted to alert the board current that most,
though I'm sorry, I just I wasn't clear if you heard my statement earlier about, not what we can discuss it. Here
you Okay, thank you. Okay, I did hear that I'm only going to talk about in generic terms without any number of references, thank you. But effectively, we've got, we've got a sense the last purchaser dropped their purchase contract, we have been in contact with the broker about relisting and trying to get a more, you know, shorter, firm due diligence and more certainty in the price or the closing and if price difference would be that we would be facing. And so they provided that listing agreement, which I've made reference to in the letter. And then secondly, in an effort to get maybe a larger national exposure on the RSL, we spoke with the folks at CBRE, who were, who was in the process of providing VOIP and their initial discussions while they felt that there were very few land cops that would match up their dollars per square foot seemed a little more consistent with what we've experienced in the past. So they said they would have in two to three weeks there VOB to us. So really, the purpose of this letter today and the update, just to let you know, we've got a proposal from the previous broker, Kevin McCabe at REMAX who's local and has been very supportive and helping us with the maintenance of the property, etc. But I think we should wait before we make a determination on our listing, until we can get the additional input in from other CBRE folks. And then we can determine whether the price points a dealer table is worth extra marketing time and exposure to achieve that. In the meantime, you know, we've been trying to work on seeking a tax appeal and the real estate taxes a little bit classes of carry, which are easily allows the board to have a longer carry to get a better price. This point, the next appeal would not be eligible until 2025 based on their cycle, but we're still working with a national firm to give us their feedback as to what they feel they would be successful on an appeal. In probably two to four weeks at the latest I'll have both the broker opinion about you and some feedback on the Tax Appeals. And that's really the update at this point.
All right. Does anyone have any questions?
I don't have any questions for you. But I just wanted to remind the board that right at the last meeting, we understood what was taking place and they're just looking for some long term planning and knowing that we're doing something so this is.
So Lou, this is John Naglick. So given that the water entitlement is what holds back with held back other people from closing on this property, I totally agree with the using Ryan, who's obviously a renowned firm that property tax appeals, going back at it with a local government saying if you're not going to let us sell the property with the proper amount of water entitlement, then the property is not worth what you haven't assessed. And I think that's a really smart move. And I'd also suggested just since a lot of locations that don't want to have more development, governments will sometimes buy back a piece of property so that it doesn't have to be developed. Have you given any thought to approaching you know, the I don't know, the village of Kona, but this Hawaii jurisdiction to indicate Do they have any interest in buying back this land perhaps for a land trust so this doesn't get developed?
We've not had a specific conversation but with the local previous broker that was involved REMAX we have expanded the potential buyers is because he's local in nature and seems to be very plugged in. And I think we're also going to gain some additional insight from the CBRE guys. We haven't had any specific conversations we identified, you know, educational institutions or some colleges or upper level schooling as being developed. So we've been trying to identify those so we are on that path looking at other options. We were trying to figure out a long term land lease make sense that there's a reversion. And so effectively all of the carry in dollars come in. But effectively 50 years from now the property, whatever the improvements all come back to the board. So we're looking at every possible alternative just be able to present to the board and say which of these might make the best sense for you. I did learn in conversations with the CBRE folks that they felt those water rights that were previously issued as part of that SMA that had back when the board first foreclosed on the property that those are able to be those are some what I should say. They, they suggested that they would be available if we paid the fee. And that's something that we're chasing down right now to let you know, but if we buy the water, right, and we reinstate then they expire. Again, we don't want to add additional pairing as long as we know we can hold on, there's a lot of rights that we had. And we first got involved in investments to date the board on that and the next unit report
And Lou, maybe for those — you know, and I've been on the board a while now. But this was never an investment that the board decided, our previous board, it made sense to buy a piece of property in Hawaii. This came to us through some type of failed investment, didn't it?
it was it was it was a it was a proposal that was made by a local developer, there in Detroit who had a partner in Hawaii, and it was an investment.
Okay, so we're cleaning. No, why
So what I would say to you is that there was a there was a conscious decision to invest because of that point in time preceding the really the recession that occurred shortly thereafter, everything that was built in Hawaii was pre-sold. And so that was the investment decision that was being made. But unfortunately, this one just didn't happen.
Alright, thanks.
Any other any other discussions? So did everyone have an opportunity to read the letter?
We read and understand what's being suggested. Is there, what's the board's pleasure?
Let's proceed with the motion is identified in the letter
I'll support. Motion has been made properly supported, any further discussion? What is the, the final recommendation?
Well, it's in the portal do should we go into closed session to talk about it?
go through? Okay. Sure. All right.
Okay. Motion has been made properly supported. Those in favor? Of the same right.
Thank you, Lou, appreciate you dialing in.
And thank you for being with us as we get the additional details. Thank you. Thank you.
Turn over to cover letter.
Performance. Great morning, everyone is somebody who just give me the ability to share my screen.
Kevin, if you could just confirm that you've seen the report. Yep. So before I turn to the performance, I'll just give you a quick update on the work that we are doing with the with the committee. We have a meeting coming up at the beginning of June, where we'll be discussing and making recommendations in regard to the private debts to read from the last time I spoke with y'all we've talked about how we have reviewed the asset allocation focus of the first half of 2024 wouldn't be that portfolio. So NPC is tasked are working on some implementation recommendations, again, in regards to that portfolio. So we'll report back to you where the decisions from. So you can see here, this is the major market indices, three 331. I'll focus my comments here on the second column titled buying PE which is year to date. You can see the Old Country World Index which represents US equities and developed non US equities in emerging markets for the first three months of the 1024 was up 8.2% raise in one year return to 23.2%. So, obviously, as you'll see here within the equity indices, a very strong first quarter, and certainly a very strong trailing one year. If we break down that All Country World Index you can see the US market is defined by the s&p 500 which represents primarily us large cap companies, for the quarter was up 10.6% Bring the trailing one year return to just shy of 30%. If we look at small cap companies as defined by the Russell 2000 can see for the first three months up 5.2, so on its own have a strong absolute return. But again, if you compare that up into the s&p large cap significantly, outperforming small cap, the Russell 2000 on a trailing one year up just shy of 20% moving into the non US equity market EP which defines us sorry, non US developed markets for the first quarter of 5.8%, trailing one year 53. And then finally, the MSCI em, which is the emerging market equity indices, which is heavily influenced by China 2.4% on the quarter and then 8.2 on the trailing one year. So again on its own, likewise for the quarter, just over 8% In just over 3% with a one year really been driven by the US market. And within the US market, large cap mega cap growth companies that really then the bigger the overall bigger driver. For the credit indices, you can see the second benchmark, Bloomberg uspg, which stands for aggregate, which represents us commercial grade 16 comes top a lot here over the last year about that higher interest rate environment. So the yield on fixed income is much higher, which is a benefit to you. But you can see here on a year to date overall index is down 2.8%. So we continue to see that volatility with the expectation anticipation of where interest interest rates may or may not be going the overall market is feeling that interest rates will stay higher for longer. As I was waiting, there was some breaking news that inflation came down a little bit. So again, lots of debate on what interest rates do. overall consensus is potentially some small pots towards the end of the end of the year. But again, they're all really dependent on where disinflation prints go. The Fed is clearly stated that they will keep rates higher for longer to keep the position that Bloomberg aggregate you can see on the trailing one year at 1.7. So you didn't obviously risk market risk and market for the year to date and betrayal is one year, global equities significantly outperforming fixed income you yield which correlates highly to the equity market yield below investment grade, year to date at 1.5% and the trailing one year at 11.2%. And this has been a big benefactor to your portfolio of a dedicated short duration, high yield manager a lot of positive performance to the overall portfolio. Move into the overall portfolio here I will state again this is preliminary, we don't have all the final market values for the alternative portfolio. So you'll see your total private equity zero, real estate CRL. And even some of these diversifying strategies we don't have all of those in so once we get all of market values in we'll update this to re recalculate total fund performance. With that said you can see for the three months or the first quarter of the calendar year, total composite was up 4.2% outperforming the policy index returned 3.6 fiscal year to date, which is obviously important to you from an actuarial perspective of 8.6. Slightly trailing the policy index returned 8.8. So I think the key takeaway here is outperforming that actuarial assumed rate of return one year trailing and Kenny versus 11. Great. Again, once we get to those final valuations and you might see some of those total composite returns increased slightly. When you look at a three year trailer and see four six versus three for a five year seven, three versus six two, and then on a 10 year trailing period six seven versus 5%. Focusing my comments here on the quarter again total deposit did perform. However the total equity composite did lag tool in the market with 45% of total assets. You can see 7.9% underperforming the old country world that index return 8.2 Your overall domestic equity composite pretty much match the benchmark, you can see 9.9% versus the Russell 3,010%. We did see some slight over March, the total international equity portfolio for the quarter reached seven versus four, eight. As a reminder, you're actually in the process of terminating that portfolio. And those assets will be redistributed to the global equity managers Committee voted to retain. So this overall portfolio again, will go away and become global equities. One thing that's really helped the performance here for the first three months is you're overweight to us compared to the benchmark. Again, 44.5% is broken down 29.5% domestic for us, and then 15% International. Moving to your fixed income portfolio, I mentioned earlier how strong it has been on a relative basis, not an absolute, you can see on a relative basis, the first quarter positive point five, outperforming the negative point 8% Return of the US aggregate index, fiscal year to date for two versus two, six. And then one year five, nine versus 1.7%. So really strong performance on a relative basis to that with a fixed income portfolio. So that as a broad benchmark, again, I won't comment much on these alternatives. On a preliminary base, as you can see, the Diversified strategy bucket was up 3.3%. And then on a fiscal year to date up 9.9%. And then real assets, which is the MLP. Managers, you can see the three months at a preliminary basis at 6%. And then fiscal year to date up 12%. We're still waiting, I think for one of those market values coming. So again, that was numbers. So I'll stop there. I just wanted to give a quick update on performance. Again, we can represent this once we get the final numbers, then, again, the first three months of the year, outperforming the benchmark for two versus three six fiscal year to date significantly outperforming the actuarial expected return. So I'll stop there and answer any questions or Kevin, you want to add anything that I may have missed.
Kevin, I noticed on our payments, generic disbursements, we had licensing fee for tobacco was like $30,000 In order to add some add on to run lights, other index funds and payment to for the king Anderson is $100,000 A quarter. What is their management fee on this product?
Whoever has the answer.
Yeah. So I don't know that.
So the KT interest in market value is 50,050 results and I don't have the fee schedule in front of me I can work and get that 100,000 warranties seem somewhat high, but I have to I have to go back. I don't know if that's a couple of I don't know if there's a couple of corners that might be
bringing that to your attention. And I have a question for Kevin Keneally getting $82,000 in June from the city. And we're in the process of 90% going to Global Allocation liquidating a lot of portfolios, international emerging markets, money's coming in and money going out. Are you putting the money? Well, it's sitting around waiting to be
distributed. So it's sitting around for a very short period of time. And it's it stays in the cash account, which will get us which one the BMI account? And what are we getting on this one? I don't know. It's it's consistent with with a three month mark, no, I mean, money today cash get 5% in funds, we're getting that and I'm gonna have to check what your
fees are for Kevin FDIC meeting I asked for an update on liquidation the real estate $40 million from for those that I can report when does that happen to the PC to participate in this
coming in June? I think I answer that question. I think I scheduled it did one email the liquidation schedule. But it's
I want to know the progress what we're in cubes and some of this stuff. So I don't know if you're getting any money back at all. I'd like to know what's happening.
Right? Yeah. So of the
stuff that three additional that we To play 10 million from Yes, they will be in by June 15. Although forward, well the 10 million that we took 10 million out of four of the commingled real estate funds 10 million from Churchill and then a three mil, three 10 million from the other piece. Yeah, I'd like an update on what's been happening in those four funds. Yeah, I will send you the I'll resend or send the elimination, because that EPC work with you on that. They're just liquidation, that they're working with us on the EPS trouble, but the other three were straightforward. They're just, they're just liquidations of partial accounts.
So Kevin, on this agenda only up to here, you made the key observation to you know, from a city perspective that we always track events that actuarial assumed rate of return hitting six and three quarters. So through March, we were up 8.6. So we're obviously ahead of the game. We all know that in April, the markets kind of, you know, went backwards that the maze kind of rally back, it seems to me like through yesterday. May valuations kind of got back to where we were at the end of March? Do you think that's a fair statement?
Yeah, let me bring up I can I can bring up the performance of the close of business last Friday. Oh, one second. Yeah, we're definitely seeing some more volatility in the market.
These are returns to close a business last Friday. So to your point, John, we just focus on that quarter today, which would be April one through the 10. You know, read into negative return positive, you can see, you know, All Country World Index, which again, represents global equities of whatever was flat and slightly over zero. You can see within the US the s&p was down 52 year to date, s&p that. I mentioned earlier about that thing, dispersion between growth and value of the quarter both negative values, significant growth levers, reversed values, six small cap stocks got hit hard for the quarter down 3%. You know, now you see year to date, the s&p and the Russell two to one non US equity world. As you can see, the EP was actually positive quarter to date. And now year to date at six, three, the emerging markets had a big quarter of 3%. Now year to date at 5.5%. So, you know, for the quarter, I don't want to say six weeks really need to look at a lot of what we've seen somewhat of a reversal of US versus non us from where we were quarter. You know, I mentioned earlier about the influence China has had on the emerging market benchmark. You know, we just look right on the one year the EM benchmark 12 to some piece 28 look at China flat at point one. For the Quarter today, China was up 30.4% moving into fixed income, you can see the market index, a quarter is down one two now a year to date down to four I mentioned earlier, I'll yield the yield on the aggregate Pat was over 5% that's positive, you know, high yield is yielding just shy of 8% levered loans. 9.3% like, you know, certainly your point of order, we've definitely seen more volatility and you know, absolute negative returns, you know, within the equity world, you know, but, you know, in general for the first five months and a week, if you will, you know, global equities still up 8.2% You know, obviously been offset by the Ag which was down to two to know, you know, month to date, which again, would just really be the first kind of, you know, 10 business days of May. Yang is a 1.4% and you can see how strong the equity markets are. So, again last year Pierpoint lots of volatility through the month of April, results in some of those, those kinds of negative returns.
Global, the global things that are going on overseas but more particular to the market anticipating what could transpire with rates and obviously, kind of reading and predicting some of the inflation prints. Tomorrow market.
Great, thank you. Any other questions discussion? Kevin Leonard, do you have anything else for us?
That's all I have. And I'll report back to the board after the next committee meeting on what decisions, the pipeline put out.
Thank you.
Thank you, everyone. Take care.
Yep. So that's always today, just a reminder that the investment committee meeting upcoming next one on June 10, where we will focus on completing for private Credit Allocation as well as any PCs work on storage. So that means that it's started.
Anything else? Thank you. And next, we have us Watson.
So based on what we just heard, and with the change in inflation How do you feel about how do you feel about where we are housing systems?
The portfolio is performing well. And it's it's above our allocation index. We have an extended credit, which is very good candidates to discuss it in June. So I think that will be edited to the portfolio. So that I liked the decisions. We've made a lot of international companies. So like we're at, like how we're positioning, the intermediate term, as well as long term is around China with China. Yeah, that's a big portion of especially the decisions around the global equity just because China is such a significant portion of emerging markets and what's happening over there. And it's been a market that has been relatively flat for over over 10 years now. And people keep waiting for it to go up. And it just hasn't been realized. So I think the decisions around that sort of de emphasize that market will benefit us. But yes, we do.
instituted more tariffs against obviously Jamie might not sit back and just say painting. Yeah.
I think if that happened to your problems is considered to be pretty dramatic, depending on the size of the terrace, but yeah, that would. But there's also Yeah, how do we how do we counteract what China has done, especially sort of thing with what they do with their currency and how their policies sort of foster an environment that isn't a bit isn't potentially fair to international counterparts. So it'll be interesting as the presidential election plays out this year to see how, if and how China plays into that from an investment perspective and a center for international labor
any other questions? Just give me a minute
or so
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This is Corey McNeely from UX wine. And I'm a bone we have Anthony nickel from Pro center. And
we're both going to bounce back and forth on the presentation today. So if you want to advance real quick, I want to start off right off the bat. With our agenda. Today, we're going to be talking about our budget and where we stand, what we have implemented thus far in the system, what usage is taking place, and then talk about the schedule for the balance of the implementation. There's not much left there. And then very last is just the member communications on the full rollout for the self service. So with that being said, let's go over to the budget. As of the end of April, we have exhausted our budget, our budget was set. But we had several other things that took place because there were some issues that needed to be resolved before we can actually move forward. First and foremost, the biggest one was data validation and cleansing. I know it's a little further down here. But with the data validation, the cleansing taking place, it took significantly longer, because resources internally didn't have capacity to pull all the data, we didn't have capacity to massage all the data. And there is a lot of little hiccups with the legacy data. So we spent a significant amount of time there getting massaged into a functional setup for the system. We are 99% There, there are some small things that pop up once in a blue moon. But we gave the ability into the system for the users here to automatically go and change it. So when they see an issue, let's just say for example, myself has a payment in there for $55,000 for one week. And my normal payment is 550. Obviously, there was some type of hiccup. So we gave that tool so the end users have the capability of fixing things moving forward. We're seeing a lot of people utilize those tools bring the things into normal processing, which allows us to go and do all the functionality that staining. But as you can see, we did a lot of different things in here that were not part of the European validation, specifically around cybersecurity, the document management bringing in 6.4 million documents from your old DMC system into the new system indexing. And then we also had a couple other things with the accounting system, the integration and the Accu Matica, the VoIP system, the tying in to that so that phone records can be also populated into the system. So I'd like to move on to show you what we actually have now in the system because we do have a lot I'm gonna give this to Anthony, but you can see we have multiple pages of functionality that is up and running. It's been tested, and it's being used in production. So Anthony, would you like to
walk us through here because they are planning on focusing a lot on some of the new things that have been put into place over the last couple of months and things that have been in the system. But we may have enhanced a bit or turned on to be fully live in the system and sunsetting some of the legacy functionality. I think, first and foremost, we've been running all of the retirements and telepan for for the last little bit here, which includes the full suite of retirement processes, which includes benefit estimates and retirement calculation, drop conversions is a whole series of processes that are in place and have been being used to process through to, to make within that functionality. We've also put in annuity loan processing within the system. And also, in addition to that, we've got the annuity refunds and rollovers that, that have been put into place. With some of the data items, we've enhanced some of the data verification capabilities within the system, to give staff the ability to update demographic kinds of time, which is the pay information that we're receiving from the policy process that gets applied into to pension statements.
84 and move forward real quick.
So here we are, over the last couple of months, we put a pretty big effort in place to add in additional reporting for payroll and for different departments to replicate a lot of the reporting functionality that was in some legacy system. So we've been working through that and enhancing some of the potential payroll functionality to to better support the fundamentals.
And to put it into perspective, over the last month, we've developed 120 different reports that go out to various agencies or departments to be able to communicate the information that's taking place in the system. So when a new retiree happens, information goes into the Viva, we recreated all those reports that were done internally, in the system, I think we only have about seven more to go. But those are for the urine reporting process right now. So we got a little bit of time just to get those taken care of. But they're, they're 95%, they're like to move on to the next slide. So Anthony, do you want to cover this real quick, I think these are all older ones.
A lot of these are older.
So I think we're good with this. So as you can see, we got three pages worth of functionality. When we started this process where one page or three pages, this last page is going to be completely filled up based off what we're doing going forward. So when you have to the next page real quick. And when I'm talking about usage, now, this is just an one month of what we were seeing as coming through, these are all the processes that were live for that entire month. On the right hand or left hand side, you can see that we process significant amounts of direct deposit changes, I mean, almost 1000 in one particular month, taking place there, there was a lot of changes. But if you look at since inception, were you know 12,000 Direct Deposit changes, almost 5000 Stop and ringing issues. We've updated over 3000 contract records. So we're getting a lot of usage in the system internally. And some of these items are also been done through self service portal taking place. So we're starting to see a lot of uptick in the system usage. We're not seeing any degradation from the system performance, it seems that everything's recalibrating just fine. The only time we really have an issue is when Comcast cuts the internet connections in the building, there was not much we can really do when they accidentally cut the internet connection. But other than that things seem to be running smooth. We're not having any major issues with the system where major hiccups taking place if you don't mind moving to the next. Yeah, we can see that year to date. We've had 3300 unique logins from members that are outside or a CD. We got 46,000 logins since we had self service being released for usage. Self Service right now is minimal. You can do some basic things. You can look at your pay stubs, you can do some updates, but there's a lot of functionality that's going live over the next month, month and a half for For example, right now we're in the beta tests where people can run their own estimates, they can run service checks, we have people testing that right now. And we anticipate releasing that, and I'll talk about that a little bit more in the future. So right now we have 7000 individuals 7621 that are registered for access to the system, we are going to later down the road, do a clean up and get notifications out to the rest of the people that have not registered. And if they want to register, they can, if they don't, they know we're given the opportunity. Excellent. So I'll turn this over to Anthony real quick.
Here's some of the high level overview of the remaining pieces of the system that we're looking to make live. Mesh, you can see most of these, when you look at the release notes are pending a final review, that means the process, we've been working through all of the updates that have been requested to the processes, we're looking to be able to do one final walkthrough with the whole team to be able to make sure that everything's in place, and that there's no additional changes or no additional nuances that we need to tackle. Before we do that. So the basic cadence for the rollout, the next big piece we're looking to get live is processing all of the desks within the system. So it's in our system, we we've broken it into a couple of different workflows, one to require that you want to process out any beneficiary payments for the benefit that needs to get paid out. And then after death has been rolled out successfully, we're going to be pushing forward with the disability rollout. And finally, divorce process. And those are the last benefit related processes that we're looking to do a side by side with that. We're also right now working through to finalize the actuarial extract so that we can do a full parallel test against what came out of the legacy system versus what's coming out of Intellivision. So instead of the plan year closes, we want to be able to make sure that those are in place and reconciling. In court, I mentioned it earlier, we're looking to expand what we're low rolling out in the self service portal to get people the ability, the ability to do benefit estimates. And we've also been looking to put in place multi factor authentication, where we can have SMS text messaging and email verification for for members logging into the system.
Just for clarification on the self service portal, we are releasing some functionality that is negligible in case somebody who has nefarious intents get in. So for example, no hacker is going to come into the system and change your tax withholding. So we're going to start allowing some of those things that happen. While putting in a lite version of MFA. MFA. Most people probably know when you log into your bank, sometimes it says I'm going to email you a code to be able to get in or text message you right now we have the capability set up that it's going to email you that authentication goes. But we're also adding an SMS. So you can get a text message or you can choose in between. Once that's up and running, then we're going to release a lot of other things into self service, like the ability to update your direct deposit the ability to change deductions, the sky's kind of a limit there. But we wanted to hold off in case somebody got into the system, we didn't want them to be able to change direct deposit and take a retirement payment. So right now we have some of the things that are real basic, nobody's going to change the retiree stance holding, because there's not really a way to game the system from that aspect. So we're going to start rolling those out and see how they perform. We want to be able to test it and make sure everything's going forward. Excellent. So as it stands right now, the last portion is the member communications, we have all the documentation, ready to go, we just need to update the date. We're holding off on sending that out because we want to make sure MFE works properly. We don't want to send out something and say hey, this is ready to go and then go wait another two weeks. So once we have that deployed in the next few weeks, we're going to be able to start sending this stuff out. And we have a cadence sitting there that we're going to send out initial registration letters to people who did not reply, we're just going to assume that they never got them. Then we're going to send reminder postcards out as well as giving department notifications and then uploading information to the RCD website to publicize the capabilities. We have placeholders for training webinars, but we also develop training videos of everything on the system to be able to have that posted up onto the website so that if somebody has question of how do I do my retirement or do a benefit estimate? There's a video showing that we also have text based narratives that just show step one, step two, step three. So some people are visual, some people are able to read and go through it. We gave a multitude of training opportunities for people to be able to do that. And then last but not least, there was a question, but if you can't figure out, you click it, submit your question, and it comes back here to somebody in member services to be able to help you out. So that is our current schedule. Like David mentioned, we're running in parallel in the legacy system to the end of the year to make sure all the reports tie out exactly to what we have. And then the actuaries are also going to validate all the reports. And from that point, everything else will be sunsetted. And presenter will be the system and record, everything will be running forward. And I believe this is the last slide. So I'll turn it over any questions? Okay, sure. Okay.
Maybe I'm just asked too often, if it comes back now ask questions. So my first one is related to the timeline, the project lands. So in my second question is related to budget, you started off saying we're over budget, which is a concern? And I'll get to that. And my second question, but if we are over budget, where are we with? Solid dates, the project plan? Because, you know, since I've been asking questions, it's kind of just been open ended. July, October numbers, they tend to throw him out. And even this is, you know, kind of pending approval, and it's two weeks after approval, so still very fluid. But I'm very concerned with the lack of funding that we have a more definitive schedule. So what is the schedule? And can you provide actual dates,
so the actual dates are dependent upon staff agreeing to once program. Last time that we met in August, we had several of these processes already defined, reviewed, and approved. And then once they went into actual processing, they discovered some various issues that we needed to refine. So we have refined those, we have done preliminary reviews with them. And we're doing five more reviews over the next two weeks. Today, we're doing a final review on the death process. There was things that once people started doing the process, realize, hey, we do this. And we need to get this integrated into the system. So new requirements popped up. And that's why there was your obligation on the topic.
Okay, and I'm sure staff has some companies. So my next question is about the budget. I heard that, for the most part, the city's inability to provide the data early on. We were all aware of that, right? We were moving into a new system. So we realized that, but even after that, when you Ah, why has come to the table, and that was resolved. There was some ship assurance given to us that, you know, I feel like two years ago, we were given an assurance that let you know that July than it was October that it was another July. So there's been a lot of iterations since that particular situation. And I'm just not confident and comfortable saying that it's on the city side. I'm also concerned that you're indicating that cybersecurity document management, you went from one page of requirements to or functionality to three pages, did you Ah, why just completely underbid this and not know, what you were getting into when you provide it? You know, the beta for this service? Because I've just never seen this. And lastly, what is the original budget and how much overall? So
I can't give you exactly what we're over as of today. We're slowly tripling over it, because we ended up in April,
but you know, we have asked repeatedly I have for that information. And every meeting, you say you will provide it and you've dumped. So I would like for us to have, what the original budget was, specifically why we are over and where we are today that needs to be provided to this board. Okay,
if I don't know where it dropped off, but I did provide it internally here. So I don't know from three years ago. I don't I can't recall three years ago but the last board meeting Yes.
If you can't tell I'm highly disappointed that we are still at this point. There to me seems to be a lack of accountability on you. Ha You hy son. You know, I've done implementations with the city a few times. Now. You use words like you know, we got new business requirements. Well, that's because the system is bottoming out. So I would like for you hy to take some culpability in this. Because I do think it lands there. So
I would say this out of the new requirements, we had numerous functional requirements gatherings, we had review sessions with staff and management on those particular items. And we develop them. And once they were developed, the requirements changed. So there is some lag that took place on that, I can only develop based off what we're told what we documented with Visio. On the other items that were sitting on there, those were never in scope for an ERP implementation. Those were requested after the fact, document extraction, data migration was originally scoped for IT professionals here. So there is there is that delta that took place there, because we had to provide individuals, and we were requested to provide individuals from low back pain.
In response, I'm just really would have liked that level of detail at this board. For us to understand that, for us to understand that there was a change order approved, who approved it, what the amount was for it, it just feels like we're getting to the end. And now we're over budget, and we still don't have a real definitive project plan. It might be a couple of weeks. I mean, these are pension, you know, dollars, these are, these are employee dollars, retirees dollars. This is not just some big fun that we can just play with. And so I'm just I'm just terribly concerned that we need to wrap this thing up. And we need some dates and I would like to know how much over legend
Thank you. Thanks. A couple questions. I'm my most major concern is cybersecurity that we hear about ascension. They get hacked all over the country. I mean, what's responsible for cybersecurity here is up twice as a presenter was traveling soon. So from a cybersecurity holistically standpoint, that would be something I'd have to talk to Paige we did some testing to make sure that there was no issues with the tools that we have. We also did some kind of testing and vulnerability tests so that John and the IT team could go ahead and address that. Anthony keep me honest on here, though, but from a percentage standpoint, your sock one sock to compliance and technical for me. Yeah, it's so percent.
John, John Chapman are the only person we got out of here today. We got Rachel Ben Catskill. That's not going anywhere. Ray's gonna retire. But yeah,
my concern, first and
foremost, is that we wanted to
Okay, we'd sentence here three days a week. I mean, they weren't somewhere in on Monday, somewhere on a Friday, is that slowing you down, that they're not here to train them, or 10 involve them in this process going on training for them. I mean, there's obviously some slowdowns with the remote work that took place. And it took a while to get calibrated to get everybody to get used to doing the hotline drags them into this office and training sessions. Again, it's gotten much better.
You mentioned the
people, what do you do for the VA life and never seen any work from? Oh, we send a lot of reports to them. The people you send it to I don't see it. Moving forward. I
have to
give you the information. It's all the TC 90 reports and things of that nature raised to create. And we were informed just like eight hours a quarter for the Beavis just inputting information or send files back and forth. That's all he's doing.
Yep. There's the reports of like the people with introductions are changing deductions. comes from the system. So the old system was right. Yeah. And we produce a lot of reports for various city coming through. Okay, thanks.
Any other questions?
Okay, thank you. Thank you
so councils report. Format informative. Thank you
repay me twice for April.
Somebody like those.
Somebody Thank you. Think I'll have to check with the bill we get here should be the whole bill. You see the whole bill.
just limit it 75,000 words on this first one
today, let me check, let me check what
am I gonna say 150 A month
together so, the information that Kim asked for, how soon can we get
let me talk to Cory and find out, you know, give before the next meeting
Okay, yeah, I'll let him know by Wednesday of next week for sure. Or did you get it from Ramsey? County?
So, yes, by the close of business next Wednesday
it's yours as long as I've
been on this board
so back to
any old business? Any new business manager. So to Dave and Gail, I think you already answered this earlier, but during our budget, the human resources departments budget hearing with council, you know, Councilmember Daryl Hall is heading out for the task force. And we also presented that we have an employee benefit program called Perk spot. And he's specifically requested that we reach out to or extend the benefit, which is an employee benefit online Disneyworld rental cars what happened to our retirees hearing the conversation we've had earlier? What if any process could we use to get communications out to retirees to see if they want to sign up for first spot and northeast their email addresses because we do have enough licenses to enroll them into Park spot but hearing the conversation earlier I don't know that we can get it
just go directly to a website or anything like that base, the main show
we have like licenses and so we would need their email address to load them in so that they could have access to the site
we could provide on our website and then check stuff you know, certain paraphrasing but certain herbs through the city of Detroit that run our discount or whatever, are open to retirees please go to this website call this number contact
because we wouldn't they wouldn't just be able to go to the website we actually have to load them in first but then
they kind of I don't want to burden you know, we don't want 20,000 People Jane at the city and then we like blow up
there's one admin kind of a pain Yeah,
so we can talk after but I don't know how we would we think about the best way we'd have them contact whoever.
Okay, how long would you do that? Just trying to see if we could,
we could we can give up the information but again, you don't want 10,000 retirees and 15,000 Only one person saying do I want to go to Disney World looks like this.
Okay, thank you. 0.04
dependence of the ifvp annual conference in November
has been support. They probably support it because at the same rates
any other questions comments concerns? To say similar was to pay us quarterly do anything else? Now have a motion? Some support. Oh Michael, did you do yours? When I was getting them