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Page 1 MONEY PURCHASE PENSION PLAN FOR PEACE OFFICERS BOARD MEETING Minutes May 17, 2012 Meeting Summary The Board met to 1) review/approve the minutes from the last meeting; 2) review/discuss New Business; 3) review/discuss Old Business; and 4) discuss any Other Business. Roll Call Present: Present were Employee Board Members Micheal Deedon, Justin Petersen and Bryan Lingo, Director of Finance Pat Soderberg and Director of Human Resources Suzanne Smith. Absent: None. Others in attendance: Adam Varga and Darrell Quam from Wells Fargo. Jim Becklenberg from the City and County Manager’s Office, Tom Deland from the Police Department and Amy Benallo and Vickie Mauri from Human Resources. Minutes/New Business Items The meeting was called to order at 2:00 pm. Disposition of Minutes – The minutes of the March 13, 2012 meeting were approved with no corrections. Pension Plan Alternatives: Chief of Police Tom Deland advised the board that he has been told by members of the police department that they feel they cannot retire at a particular age. Some of the officers feel they should be able to retire at age 55 but they feel they cannot afford to retire. The board had looked at FPPA as an option several years ago but the members did not vote in favor of exploring that options further. Mr. Becklenberg noted the desire to have a strong department and a pension plan that did not incur additional long term costs for the city. Mr. Deedon made a motion for the board to explore retirement plan options. The motion was seconded by Mr. Petersen and approved unanimously. Review/Discuss of Index Funds: The board requested information on the addition of funds to fill any gaps in the current line-up. This included International Bond fund offerings, high yield bond fund offerings, foreign large value and Small Cap Index Funds. Mr. Varga presented various options (2012 05 17 Fund Search Analysis to the board. Mr. Varga explained the fund offerings for International Bond funds, high yield bond funds, foreign large value and Small Cap Index Funds. Mr. Varga provided a comparison of the fund offerings in the areas of: 1) cumulative return, 2) calendar year returns, 3) rolling 3-year history returns, 4) excess return, 5) style analysis, 6) risk and value added statistics, 7) upside/downside analysis, and 8) performance as of 03/31/2012. The board felt that Templeton Bond Fund would fill a gap in the plan offerings. Mr. Deedon made a motion to add Templeton Bond Fund to the line-up. The motion was seconded by Ms. Smith and approved unanimously. Mr. Varga presented the options for a high yield bond fund. Several board members ---PAGE BREAK--- Page 2 expressed interest in seeing results for PIMCO High Yield. Mr. Varga will provide that information at the next meeting. The board did not recommend any of the offerings during this meeting. Mr. Varga presented options for small-cap index funds. Mr. Deedon made a motion to add Columbia Small Cap Index fund to the line-up. The motion was seconded by Mr. Lingo and approved unanimously. Mr. Varga offered some alternative funds for the board to consider to replace the Wells Fargo Small Cap Opportunity fund. The board did not feel action was necessary at this time. Mr. Varga presented options for foreign large value funds. Mr. Deedon made a motion to add Dodge and Cox International Stock Fund to the line-up. The motion was seconded by Ms. Smith and approved unanimously. Mr. Varga was not able to present information on foreign large blend funds and the board will review this information at the next meeting. Fees/Revenue Sharing: Mr. Quam will present this information at the next meeting including an illustration of how collective funds impact revenue sharing. Ms. Smith advised the board of the need to review the collective funds in more detail to assure transparency and the impact on revenue sharing. This topic will be discussed at the next meeting. Review 1st Q Results: Mr. Varga will present this information at the next meeting. Review/Funds on the Watch List: Mr. Varga will present this information at the next meeting. Diversification Report: Mr. Quam will present this information at the next meeting. Survey to Other Cities: This item has been tabled pending the completion of the project to review pension plan alternatives. Old Business/Other Business Old Business/Other Business: Status of Mutual Fund Changes: Fees and Revenue Sharing: Mr. Quam will present this information at the next meeting. Adjournment The meeting was adjourned at 3:45 p.m. Approval Minutes Prepared by Suzanne Smith Approved by Chair